Fact SheetFirst Half of Fiscal Year Ending March 31, 2017
Stock Exchange Listing: First Section of Tokyo Stock Exchange Stock Code: 7844 URL: http://www.marv.jp/
Contact: Administration Division, Corporate Planning Department TEL: +81-3-5769-7447

Marvelous Inc.

In line with our management philosophy of the "'Amazement' and 'Emotion' to the world with New Entertainment,"
Marvelous Inc. is a comprehensive entertainment company which develops online games, game software, amusement
games, audio & visual content, stage and musical performances, and other products and services.
Summary of Consolidated Quarterly financial information
1Q

2QFinancial Results (Unit: million yen)

(Unit: million yen)

3Q

4Q

Operating Income

50,0007,500(3 months)(6 months)

6,203

12,999－－40,000Operating Income

638

1,317－－

30,000Ordinary Income

410

1,055－－

20,000

Profit attributable to owners ofparent

303

799

－

－

10,000Net Income Per Share (yen)

5.86

15.45

－

－

0

Net Sales(9 months)

Net Sales(full-year)

Results of Operations

34,0004,500

16,447

11,387

2015/3
1H
FY ended
March2015
2Q累計

1H2016/3
FY ended
March2016
2Q累計

2017/3
1H
FY endingMarch2017
2Q累計1,500

通期予想
Full-year(forecast)Ordinary Income

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, andis 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 half (April 1, 2016 to September 30,2016) marked 12,999 million yen, with operating income of 1,317 million yen,ordinary income of 1,055 million yen, and profit attributable to owners of parentof 799 million yen.

1H 2015/3
FY ended
March
2015
2Q累計

1,317
1H2016/3
FY ended
March
2016
2Q累計

1H2017/3
FY ending
March
2017
2Q累計

通期予想
Full-year(forecast)

7,500

5,850

4,500

4,150

3,000

1,514

1H2015/3
FY ended
March
2015
2Q累計

6,000
4,500

2,793
1,055

1,500
00

1,449

Profit attributable to owners of parent

6,000

3,000

2,841

3,000

12,9997,500

The entertainment industry in the period under review saw the virtual reality(VR) becoming a popular topic in Japan and overseas. Media across the board
have been featuring scores of VR related news and also the TOKYO GAME SHOW
2016, where the year 2016 was declared the "VR Founding Year," promoted thetopic vigorously. Trends in VR markets gripping the world look likely to remain amajor focus of attention.

6,000

6,000

1H2016/3
FY ended
March2016
2Q累計

1H2017/3
FY endingMarch20172Q累計

1,500
Full-year
通期予想(forecast)

Percentage of Net Sales by Segment

01,910934
1H2015/3
FY ended
March2015
2Q累計

799
1H
FY ended
2016/3
March 2016
2Q累計

1H
FY ending
2017/3
March 2017
2Q累計

Percentage of Operating Income by Segment

17.3%

31.3%
55.7%

OnlineGame Business
オンライン事業
ConsumerGame Business
コンシューマ事業
Audio& Visual Business
音楽映像事業

27.0%

Full-year
通期予想(forecast)

Online Game Business
オンライン事業
Consumer Game Business
コンシューマ事業

49.9%

18.8%

Audio & Visual Business
音楽映像事業

1Segment Information (Performance Summary)Online Game Business

Consumer Game BusinessLeading Titles
Logres of Swords and Sorcery:
Goddess of Ancient©Marvelous Inc. Aiming Inc.

战斗吧 蘑菇君
(Logres of Swords and Sorcery:
Goddess of Ancient)

BOKUJO MONOGATARIMITTSU NO SATO NO
TAISETSU NA TOMODACHI©Marvelous Inc. Aiming Inc.
©SkyMoon.com

Remarks about Performance©2016 Marvelous Inc. All Rights Reserved.

Audio & Visual Business

Pokémon Ga-Olé©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.

The online game business has been working to expand its user base and restore
earnings through measures surrounding the core title "Logres of Swords andSorcery: Goddess of Ancient" including new collaboration events, new function
packages, and the launch of a China-based rollout of this title through a local
publisher. However, sales of new titles with disseminations started in April
disappointed. Service was discontinued and the development of a number ofother titles in progress suspended, with a lump-sum charge taken fordevelopment costs.

The consumer game business own-sales operations showed a steady sales
performance of "BOKUJO MONOGATARI MITTSU NO SATO NO TAISETSU NA
TOMODACHI (Nintendo 3DS)" launched on June 23, 2016. In addition, thedivision came to market with "UPPERS (PS Vita)" on July 14, 2016. Atamusement division, a new machine type for "Dragon Quest: Monster Battle
Scanner" was introduced on June 23, 2016, followed by a new machine typefor "Pokémon Ga-Olé" on July 7, 2016. Despite the cost of the new machine
introductions, results have been developing to plan.

As a result, segment net sales totaled 7,248 million yen, with segment incomeof 956 million yen.

As a result, segment net sales totaled 3,512 million yen, with segment
income of 359 million yen.

Net Sales

The division's audio & visual production operations commercialized package
products such as TV anime "Witchy Pretty Cure!" and in July 2016 started
broadcasting the TV anime "QUALIDEA CODE" lead-produced by the Company.
Additionally, income from secondary uses developed favorably, such as video
dissemination sales and program sales, etc., respectively from the Company'slibrary. Stage production operations came out with new performances ofserialized productions, specifically "MUSICAL THE PRINCE OF TENNIS" and"Stage [Yowamushi Pedal]" with favorable results. Additionally, as for new
titles, performances comprised "Touken Ranbu the Stage" and "Ensemble
Stars! On Stage." Both proved highly popular with audiences. Package sales of"Touken Ranbu the Stage" commenced in September 2016 posted the highest
unit sales on record for any stage production of the Company.

4,500

15,00010,60810,000
3,960

5,000

3,200

6,000

20,0001H FY ended
March 2014

Segment income

7,248

6,117

1H FY ended
March 2015

1H FY ended
March 2016

1H FY ending
March 2017

(Unit: million yen)
4,000

3,763

3,4303,741

3,512

1,600

1,500

80001,500

2,2762,0009562180
1H FY ended
March 2014

1H FY ended
March 2015

1H FY ended
March 2016

1H FY ending
March 2017

1H FY ended
March 2015

1H FY ended
March 2016

1H FY ending
March 2017

1,8442,101

1H FY ended
March 2014

1H FY ended
March 2015

1H FY ended
March 2016

1H FY ending
March 20175765991H FY ended
March 2016

1H FY ending
March 2017

800
1,273600
41150002,249

1,86101H FY ended
March 2014

1,000

1,117

2,400

3,000

2,000

3,0001,000©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT©Touken Ranbu the Stage Production Committee

As a result, segment net sales totaled 2,249 million yen, with segment
income of 599 million yen.

(Unit: million yen)

0Ensemble Stars! On Stage

Touken Ranbu the Stage

1H FY ended
March 2014

1H FY ended
March 2015

590

1H FY ended
March 2016

4003591H FY ending
March 2017

350425200
0

1H FY ended
March 2014

1H FY ended
March 20152

Transition of Performance / Financial Indices / Transition of Financial Data

[Consolidated Statement of Income](Unit: million yen)

2012.32013.32014.32015.32016.32017.3 2 Ｑ

Net Sales (million yen)

Net Sales

10,423

17,57920,33026,441

31,82012,99935,000Gross Operating Income

4,491

8,116

9,946

14,975

19,211

6,893

28,000Operating Income

1,044

2,329

3,006

4,412

5,418

1,317

Ordinary Income

1,025

2,325

3,041

4,583

5,228

1,055

31,82026,441

1,919

1,882

2,178

3,602

1,200

2013.32014.32015.32016.32017.3 2 Ｑ

2013.32014.32015.32016.3

11,932

12,593

14,583

18,624

16,204

13,954

Fixed Assets

1,734

2,748

2,233

3,414

4,165

5,278

6,000

5,228
4,583

4,800

13,667
4,361

15,341
4,570

16,816
4,840

22,0398,535

20,3706,421

19,233
6,083

Long-Term Liabilities

20276

54

52

2763

Net Assets

9,102

10,694

11,921

13,45013,921

13,085

Shareholder's Equity

9,102

10,694

11,921

13,45013,904

13,075

3,600[Cash Flow Statement]

Cash flows from
Financing activities
Cash and Cash Equivalents
at End of Period

2013.32014.32015.32016.3

3,041

2,400

3,602

3,533

2,400

1,919

1,882

2013.32014.3

2,178

1,600
1,025

1,200

800

2012.32013.32014.32015.32016.302012.32015.32016.3

13,45013,921

2015.32016.3

Net Assets (million yen)

(Unit: million yen)

2012.3

Investing activities

4,000

2,325

Total Assets (million yen)

Cash flows from2012.33,200

0Operating activities

0

Profit attributable to owners of parent(million yen)

Ordinary Income (million yen)

Current Assets

Cash flows from

1,044

(Unit: million yen)

2012.3Current Liabilities

3,006
2,329

799
2012.3

Total Assets

4,412

2,400

10,4230[Consolidated Balance Sheet]

5,418

3,60017,579

7,000

3,533

6,000
4,800

20,33021,00014,000

Profit attributable toowners of parent

Operating Income (million yen)

1,399

2013.3
2,817

2014.3
3,852

2015.3
4,031

2016.3
5,986

2017.3 2 Ｑ

2,487

435

-2,130-634-2,218-2,874-3,594

-479

-975

-873

-1,146-3,086-1,551

5,979

5,723

8,120

8,937

8,786

6,037

25,00022,03920,00015,00013,667

15,341

16,00020,37012,80016,8169,600

10,000

6,400

5,000

3,200

10,694

11,9219,102

00
2012.32013.32014.32015.32016.32012.32013.32014.33

Transition of Performance / Financial Indices / Transition of Financial Data

[Per Share Indices]
2012.3
Net income per share(yen)Net assets per share(yen)2013.3107.62

2014.335.90

2015.335.21

2016.3

40.74

68.68

Net assets per share (yen)Net income per share (yen)2017.3 2 Ｑ

15.45

120

300

107.62251.55100

170.29200.07223.02251.55268.84252.81250
200.07

80

68.68

60

2012.3Gross profit rate (%)

2013.3

43.1

2014.3

46.2

2015.348.9

2016.3

56.6

2017.3 2 Ｑ

60.4

0

35.90

2012.32013.3

10.0

13.3

14.8

16.7

17.0

10.1

Ordinary profit ratio (%)

9.8

13.2

15.0

17.3

16.4

8.1

Capital ratio (%)

Net profit ratio (%)

33.9

10.9

9.3

8.2

11.3

6.1

100.0

[Efficiency & Security]
2012.32013.32014.32015.32016.3

75.0

19.4

16.6

17.2

26.3

-

ROA (%)

11.6

16.0

18.9

23.6

24.7

-

Capital ratio (%)

66.6

69.7

70.9

61.0

68.3

68.0

D/E ratio (%)

15.2

7.9

5.5

1.5

1.2

1.2

[Return to Shareholders]

Dividend (million yen)

323

668

2014.3694

2015.3
1,069

2014.32015.32012.32013.32014.3

20.0

66.6

69.7

2015.32016.316.7

17.0

2015.32016.3Operating profit ratio (%)

70.9

68.3

14.8

16.0

13.3

61.0
12.0

40.0

8.0

20.0

4.0

2016.3
1,551

2017.3 2 Ｑ

0.0

0.0
2012.32013.32014.32015.310.0

2016.3

ROA (%)

100.0

30.0

6.8

6.1

8.4

11.5

-

Dividend payout ratio (%)

5.6

34.8

36.9

49.1

43.7

-

2014.3

23.6
24.0

24.7

18.9
16.0

18.0
11.6

-

6.1

2013.375.0

60.0

DOE (%)

2012.3

ROE (%)

40.0

Important matters concerning
the per share indices0

2016.360.0

80.0

2013.3100

2017.3 2 Ｑ

ROE (%)

2012.335.21

50

Operating profit ratio (%)

80.0

170.2940.74

2053.020015040[Profitability]

268.84223.02

19.4

26.3
16.6

17.2

20.0
0.0

12.0
6.0

2012.32013.32014.32015.32016.30.0

2012.32013.32014.32015.3On October 1, 2013, the Company executed a stock split of its common shares at the ratio of 100 shares to 1. The per share indices take into consideration the effectsof this stock split.

2016.3

4

Future Developments & Outlook for Fiscal Year Ending March 2017 / Basic Information
Future Developments & Outlook for Fiscal Year Ending March 2017
The Company has been deploying a "multi-content, multi-use, and multi-device" strategy todeliver diverse entertainment content in all business segments and on a variety of devices. In
order to establish robust IPs, the Company has been driving its strategy in the three key areas ofbranding, alliances, and global business, and is working to offer content that generates "buzz"
among today's users while endeavoring to enhance its services. The Company will keep aiming atfurther gains in enterprise value and attainment of sustained business growth by leveraging its
strengths as a comprehensive entertainment company and broadening the reach of theMarvelous brand.
The full-year outlook for fiscal year ending March 2017 is for an improving earnings margin at
the online game business as unprofitable titles are scrapped and steps taken to sustain thefavorable performance of rebounding core titles. The consumer game business will focus on sales
launches in Japan and overseas surrounding new package software products. At the amusement
division with its line-up of three powerful IP titles, each title will see strengthening throughcollaborative initiatives and advertising. And the audio & visual business, where standard series
and new titles alike have been performing well, will continue to work on maximizing sales andearnings of each title and focus on expanding income from secondary uses.
As a result of the aforementioned efforts, consolidated results for the current fiscal year are
forecast to achieve net sales of 34,000 million yen, operating income of 6,000 million yen, ordinary
income of 5,850 million yen, and profit attributable to owners of parent of 4,150 million yen.

Comprehensive Strengths of Marvelous
Online Game Business

Consumer Game Business

Native app

PC browser game

New title
development

CD/DVD/Blu-ray

Home-use gameSocial gameIP value
optimization

Amusement game

Strategicpartnerships

Audio & Visual BusinessStage and musical performances
Distribution and program sales

Overseas
expansion drives

Multi-media
expansion

Diversification and long-term orientation of earnings
Sustained business growth

Basic Information
Stock Information (As of September 30, 2016)

Company Profile (As of September 30, 2016)
・Company Name:・Head Office:・Established:・Capital:・Officers:

Marvelous Inc.
Shinagawa Seaside East Tower,
4-12-8 Higashi-Shinagawa, Shinagawa-ku, Tokyo, Japan
June 25, 1997
1,128 million yen

Chairman, President and CEO
Vice Chairman
Representative Director, Executive Vice President and Co-COO
Representative Director, Executive Vice President and Co-COO
Managing Director
Director and CFO
Director (External)
Director (External)
Standing Statutory Auditor
Corporate Auditor (External)
Corporate Auditor (External)

Haruki Nakayama
Shuichi Motoda
Takashi Sensui
Toshinori Aoki
Yoshiaki Matsumoto
Seiichiro Kato
Shunichi Nakamura
Makoto Arima
Toshio Nago
Tadahiko Ono
Hisashi MiyazakiBusiness Activities
Online GameBusiness

Proposing, developing, producing and marketing apps and games capitalizing on
the Company’s proprietary intellectual property and other companies’ promisingintellectual property for various platforms

Consumer GameBusiness

Proposing, developing, producing and marketing game software for home game
consoles and game machines for amusement facilities

Audio & VisualBusiness

Proposing, producing, and marketing a variety of contents including audio andvisual, as well as proposing, producing, and exhibiting stage and musicalperformances

・End of term: March 31・Shares per unit: 100・Total number of authorized shares: 90,000,000
・Total shares outstanding: 53,593,100
・Number of shareholders: 21,650[Major Shareholders / Ratio of Shares Owned]
・ Hayao Nakayama
・ Amuse Capital Inc.
・ Haruki Nakayama
・ Amuse Capital Investment, K.K.
・ Japan Trustee Services Bank, Ltd. (Trust Account)
・ TOHOKUSHINSHA FILM CORPORATION
・ CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW・ Trust & Custody Services Bank, Ltd. (Trust E Units)

18.80 ％
12.83 ％
10.49 ％
3.52 ％

・ The Master Trust Bank of Japan, Ltd. (Trust Account)・ Bank of New York for GCM Client Accounts (E) BD

2.52 ％
1.49 ％
1.03 ％
0.95 ％
0.89 ％
0.71 ％*1. Shareholding ratios are calculated after deduction of treasure stock (1,372,400 shares).
*2. Shareholding ratios are truncated after three decimal places.
*3. A total of 500,000 shares held by Trust & Custody Services Bank, Ltd. (Trust E Units) constitute trust assets of the "Board Benefit Trust (BBT)"
entrusted with Trust & Custody Services Bank, Ltd. by Mizuho Trust & Banking Co., Ltd. which retains the voting rights of the said shares.
On the consolidated financial statements these shares are presented as treasury stock.

[Stock Quote] (As of October 31, 2016) ・Stock Quote: 747 yen

・Market Cap: 40,034 million yen

5