Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(Based on J-GAAP)May 12, 2021
Company name: Marvelous Inc.
Listing: First Section of Tokyo Stock Exchange
Stock Code:7844
URL: https://corp.marv.jp/english/index.html
Representative:
Shuichi Motoda, President
Contact:
Seiichiro Kato, Director, Head of Administration Unit
Tel: +81-3-5769-7447
Scheduled date of Annual General Meeting of Shareholders: June 22, 2021
Scheduled commencement date of dividend payout: June 7, 2021
Scheduled date of filing Annual Securities Report: June 22, 2021
Explanatory documents supplemental to the abridged Financial Statements: Yes
Result briefing: None
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(April 1, 2020 – March 31, 2021)(1) Consolidated Results of Operations (full-year)(Percentages represent year-over-year changes)
Net sales

Operating profit

Ordinary profit

Million yen%
Million yen%
Million yen%
FY2021
25,520
0.6
4,414
80.2
4,558
82.2
FY202025,365(5.3)
2,449(48.0)
2,502(47.8)
Note: Comprehensive income (million yen): FY2021: 3,408 (98.1%)
FY2020: 1,720 (-49.4%)
Net income per share

Diluted net income pershareYen(2) Consolidated Financial Position
FY2021

Total assets
Million yen
33,463

FY202026,238Reference: Shareholders’ equity (million yen):(3) Consolidated Cash Flow Position

FY2021
FY2020Cash flows fromoperating activities
Million yen
4,382
2,233

Ratio of ordinary
Ratio of operating
profit to total
profit to net sales
assets%%%Return on equity

Yen－－
FY2021: －FY202155.64
FY202034.75
Reference: Equity in earnings/losses of affiliates (million yen):

13.9
8.9
FY2020: －Net assets
Million yen
26,751
FY2021: 26,751

15.3
9.5

Equity ratio

17.3
9.7%
79.9

Net assets per shareYen
443.1976.6

388.48Cash flows fromfinancing activities
Million yen
3,203(1,686)

Cash and cash equivalents
at end of period
Million yen
16,403
11,16920,099FY2020: 20,099

Cash flows frominvesting activities
Million yen(2,448)(1,597)

Profit attributable toowners of parent
Million yen%
3,265
81.6
1,797(46.4)

2. Dividends
Dividends per share
1Q-endInterim

3Q-endYear-end

Yen
Yen
Yen
Yen
FY2020－0.00－33.00－－FY2021
0.00
33.00
FY2022 (forecasts)－－－－
Note: The dividend forecasts for FY2022 are not decided at this stage.

Annual
Yen
33.00
33.00
－

Total
dividends(annual)Million yen
1,723
2,007

Dividend
payout ratio(consolidated)

Dividend on
equity(consolidated)

%
95.0
59.3
－%
8.5
7.9

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)

Consolidated forecasts for the FY2022 are not decided because it is difficult at this point in time to reasonably evaluate the impact of
the novel coronavirus infection (COVID-19). Consolidated forecasts will be promptly disclosed when it becomes possible.

*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: None
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 ofFY2021
62,216,400 sharesperiod2) Number of treasury stock at end ofFY2021
1,856,446 sharesperiod3) Average number of shares outstanding
FY2021
58,682,594 shares
during the period

FY202053,593,100 shares

FY20201,856,367 shares

FY202051,731,694 shares

Note: The number of treasury shares at end of the period is stated including 483,900 shares held by Custody Bank of Japan,
Ltd. (Trust E Units) as trust assets of the Board Benefit Trust (BBT).

Reference: Non-Consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 – March 31, 2021)(1) Non-consolidated Results of Operations (full-year)(Percentages represent year-over-year changes)
Net sales
Operating profit
Ordinary profit
Net income
Million yen% Million yen% Million yen% Million yen%
FY2021
19,905(9.1)
2,563
21.4
2,731 (55.3)
1,936 (45.1)
FY202021,890(8.8)
2,111 (49.7)
6,115
36.7
3,5268.0
Diluted net income pershareYen
Yen
33.00
－
68.16
－

Net income per share
FY2021
FY2020(2) Non-consolidated Financial Position
Total assets
Million yen
FY2021
29,392
FY202024,062
Reference: Shareholders’ equity (million yen):

Net assets
Million yen
23,775
18,544FY2021: 23,775

Equity ratio

%80.9
77.1

FY2020: 18,544

Net assets per shareYen
393.88358.43* The summary of financial statements is not subject to audit by a certified public accountant (CPA) or an audit firm.
* Cautionary statement with respect to forward-looking statements and other special items
Consolidated forecasts for FY2022 are not decided because it is difficult to reasonably calculate them at this stage. Consolidated
forecasts will be promptly disclosed when it becomes possible. For details, please refer to P. 3 “1. Summary of Consolidated
Business Results (4) Outlook.”

Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(Based on J-GAAP)

1. Summary of Consolidated Business Results(1) Summary of business results for the period
During the consolidated fiscal year under review, the entertainment industry as a whole performed well inthe domestic mobile game market, despite the continuing severe competitive environment, including theaccelerated entry of foreign companies such as Chinese firms. In the domestic home-use games market, both
hardware and software remained robust and surpassed the previous year’s market size, owing to strong
demand from nesting consumption and the launch of next-generation game consoles PlayStation 5 and Xbox
Series X/S. On the other hand, in the amusement market, the market environment deteriorated significantly
due to requests by the government to refrain from going out, the closure of amusement arcades, and shorter
business hours, because of the spread of COVID-19. Similarly, in the live entertainment market, the market
environment remained severe due to the cancellation of performances and restrictions on the number ofaudience in an event in response to the government's request for voluntary restraint. In the music/video
market, while the packaging market continued to shrink, the video distribution market was brisk due tonesting demand, and demand for animation, especially in overseas markets, expanded.
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 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 thatgenerates “buzz” among today’s users while endeavoring to enhance its services.
As a result, the Group’s consolidated operating results for the period under review (April 1, 2020, to March31, 2021) came to net sales of 25,520 million yen (up 0.6% from the previous fiscal year), operating profit of
4,414 million yen (up 80.2% from the previous fiscal year), ordinary profit of 4,558 million yen (up 82.2%
from the previous fiscal year), and profit attributable to owners of parent of 3,265 million yen (up 81.6%
from the previous fiscal year).
Results by business segment are described below.
(i) Online Game BusinessIn this business, long-term operation titles such as “SHINOVI MASTER -SENRAN KAGURA NEW
LINK-” and “Logres of Swords and Sorcery: Goddess of Ancient” performed well, and in the 11-year
term since the start of the service, “Browser Sangokushi” recorded higher profit than the previous year.
Smartphone game app “Ikki-Tousen Extra Burst,” whose distribution started in May 2020, experienced
sluggish sales, and although we undervalued software assets according to a review of future earnings, theprofit margin improved owing to the disposal of unprofitable titles in the previous fiscal year.
As a result, segment net sales totaled 7,497 million yen (down 7.5% from the previous fiscal year), withsegment profit of 1,359 million yen (up 399.7% from the previous fiscal year).
(ii) Consumer Game BusinessIn the game software sales division of this business, Japanese style action RPG “TENSUI NOSAKUNAHIME”, which was released worldwide for PlayStation 4/Nintendo Switch/Windows PC inNovember 2020, exceeded 950,000 units shipped worldwide (as of March 31, 2021), and “BOKUJOMONOGATARI OLIVE TOWN TO KIBO NO DAICHI”, which is a completely new title of the“BOKUJO MONOGATARI” series and started to be sold for the Nintendo Switch in Japan and Asia inFebruary 2021 and in North America and Europe in March, recorded a huge hit, with more than 700,000
units shipped worldwide (as of March 31, 2021). In addition, the Nintendo Switch downloadable
versions of “No More Heroes” released in 2007 and “No More Heroes 2: Desperate Struggle” released in2010 were released in October 2020, recording strong sales in North America and Europe. The businessin the division remained very robust. However, in the amusement division, due to the significant impact
of COVID-19, income declined for each title, including the latest Pokémon amusement machine,“Pokémon MEZASTAR,” launched in September 2020. Overseas development of “Pokémon Ga-Olé”
performed well in the regions where it started operation.
As a result, segment net sales totaled 14,474 million yen (up 27.0% from the previous fiscal year), with-1-

Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(Based on J-GAAP)

segment profit of 4,158 million yen (up 105.2% from the previous fiscal year).
(iii) Audio and Visual BusinessIn the audio and visual business, the pre-cure series of TV animations “HEALIN’ GOOD♥PRECURE”
and “Star☆Twinkle Pretty Cure Thanks Festival” were commercialized as package products, and thebroadcasts of TV animation “Mewkledreamy,” the Company's lead manager TV animation “My Teen
Romantic Comedy SNAFU Climax” and the TV animation “Akudama Drive” were launchedrespectively in April, July and October 2020, and each was packaged and commercialized.
In the stage production division, several performances scheduled for the first quarter were cancelled dueto the impact of COVID-19. From July 2020, we resumed performances in accordance with the policiesof the national and local governments and the guidelines of the Association of Public Theaters and Halls
in Japan, and delivered new performances of popular series; however, audience mobilization wassluggish due to the impact of the declaration of a state of emergency. Although new initiatives wereimplemented, such as the broadcast of the original comedy Drama “Hansamu Senkyo” from October
2020, the severe business environment surrounding stage performances continued, resulting in asignificant decrease in net sales and profits compared with the previous fiscal year.
As a result, segment net sales totaled 3,550 million yen (down 39.7% from the previous fiscal year), withsegment profit of 540 million yen (down 65.7% from the previous fiscal year).
(2) Summary of financial position for the period
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 period under review totaled 33,463 million yen, up 7,224 million yen
compared with the end of the previous fiscal year, mainly due to increases in cash and deposits and work inprocess.
Consolidated liabilities at the end of the period under review totaled 6,711 million yen, up 572 million yen
from the end of the previous fiscal year, mainly due to an increase in income taxes payable despite adecrease in accounts payable-other.
Consolidated net assets at the end of the period under review totaled 26,751 million yen, up 6,652 million
yen from the end of the previous fiscal year, due to the fact that share capital of 2,483 million yen and capitalsurplus of 2,483 million yen were recorded after third-party allocations of shares were paid in and that profit
attributable to owners of parent of 3,265 million yen was recorded.
(3) Summary of cash flows for the period
Consolidated net cash and cash equivalents (“Cash”) at the end of the consolidated fiscal year under review
totaled 16,403 million yen, up 5,233 million yen from 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]
Cash provided by operating activities totaled 4,382 million yen (up 2,148 million yen compared with theprevious fiscal year), mainly due to profit attributable to owners of parent before income taxes of 4,454
million yen, despite a decrease of 822 million yen in accounts payable-other.
[Cash flows from investing activities]
Cash used in investing activities totaled 2,448 million yen (up 850 million yen compared with the previous
fiscal year), mainly due to purchase of property, plant and equipment of 1,441 million yen.
[Cash flows from financing activities]
Cash provided by financing activities was 3,203 million yen (up 4,889 million yen compared with theprevious fiscal year), mainly due to 4,967 million yen proceeds from issuance of shares despite dividends
paid of 1,723 million yen.
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Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(Based on J-GAAP)

Reference: Trends in cash flow indicators
FY2017
Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market prices (%)
Interest-bearing debt to cash
flow ratio (annual)Interest coverage ratio (times)

FY2018FY2019FY2020

FY2021

68.2

72.2

76.1

76.6

79.9

186.1

184.9

168.4

105.3

155.3

3.9

3.6

2.7

9.0

3.7

6,643.6

4,057.6

6,488.9

2,233.0

3,557.5

Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio based on market prices: Market capitalization/Total assets
Interest-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 that interestis paid on. Interest payments are based on the interest payment amount of the consolidated cash
flow statement.
(4) Outlook
With regard to online games, the Company will continue to strive to maintain the strength of existing titlesand focus on launching new titles with the aim of increasing earnings. In the consumer game business, wewill focus on sales promotion of “Rune Factory 5,” the latest title in the series, and continue to maintain thestrong performance. In the amusement, and audio & visual businesses, although the effects of COVID-19
have subsided to some extent, there are concerns that the effects may expand again depending on futureconditions. In the live entertainment business, we plan to hold a large number of stage performances in thisfiscal year as well, but there are concerns about limits on the number of audience due to the risk of spread ofCOVID-19, and there is a possibility that conditions will remain severe during this fiscal year.
Under these circumstances, business results projections for the fiscal year ending March 31, 2022, areundecided because it is difficult at this stage to reasonably assess the impact of COVID-19. In the future, wewill promptly make all relevant information public as soon as disclosure is possible. The Group willcontinue to endeavor to create added value that “only Marvelous can realize,” provide unprecedented“wonder” and “excitement” to the world as advocated in the corporate vision, and create a renovative
entertainment.

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