Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(Based on J-GAAP)May 12, 2022
Company name: Marvelous Inc.
Listing: 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 21, 2022
Scheduled commencement date of dividend payout: June 6, 2022
Scheduled date of filing Annual Securities Report: June 21, 2022
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, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated Results of Operations (full-year)(Percentages represent year-over-year changes)
Net sales

Operating profit

Million yen%
Million yen%
FY2022
25,728
0.8
4,600
4.2
FY2021
25,520
0.6
4,414
80.2
Note: Comprehensive income (million yen): FY2022: 4,173 (22.4%)
Net income per share

Diluted net income pershareYen

Profit attributable toowners of parent
Million yen%
Million yen
%
5,054
10.9
3,817
16.9
4,558
82.2
3,265
81.6
FY2021: 3,408 (98.1%)
Ordinary profit

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

Yen

FY202263.23‒
FY2021
55.64‒
Reference: Equity in earnings/losses of affiliates (million yen): FY2022: ‒13.7
13.9
FY2021: ‒14.4
15.3

17.9
17.3

(2) Consolidated Financial Position
Total assets
Million yen
FY202236,531FY2021
33,463
Reference: Shareholders’ equity (million yen):

Net assets
Million yen

Equity ratio

28,97326,751
FY2022: 28,939
FY2021: 26,751%

Net assets per shareYen

79.2
79.9

479.23443.19(3) Consolidated Cash Flow Position

FY2022
FY2021

2.

Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Million yen
Million yen
Million yen
Million yen
2,820(1,094)(2,007)
16,431
4,382(2,448)3,203
16,403

Dividends
Dividends per share
1Q-endInterim

3Q-endYear-end

Yen
Yen
Yen
Yen
FY2021‒0.00‒33.00
FY2022‒0.00‒33.00
FY2023 (forecasts)‒‒‒‒
Note: The dividend forecasts for FY2023 are not decided at this stage.

Annual
Yen
33.00
33.00
‒TotalDividend
Dividend on
dividends
payout ratio
equity(annual)(consolidated) (consolidated)
Million yen
%%
2,007
59.3
7.9
2,007
52.2
7.2
‒

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Consolidated forecasts for FY2023 are not decided because it is difficult at this point in time to reasonably evaluate
the impact of the novel coronavirus infection (COVID-19) on the business amid uncertainty on when the pandemic
is over. 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: Yes
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 shares) at end ofFY2022
62,216,400 sharesperiod2) Number of treasury shares at end ofFY2022
1,828,646 sharesperiod3) Average number of shares outstanding
FY202260,376,634 shares
during the periodFY202162,216,400 shares

FY2021

1,856,446 shares

FY2021

58,682,594 shares

Note: The number of treasury shares at end of the period is stated including 456,100 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, 2022 (April 1, 2021 – March 31, 2022)(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%FY2022
20,1581.3
2,420(5.6)
3,085
13.0
2,503
29.3
FY2021
19,905(9.1)
2,563
21.4
2,731 (55.3)
1,936 (45.1)
Diluted net income pershareYen
Yen
41.46
‒
33.00
‒

Net income per share
FY2022
FY2021(2) Non-consolidated Financial Position
Total assets
Million yen
FY202230,714FY2021
29,392
Reference: Shareholders’ equity (million yen):

Net assets
Million yen
24,287
23,775

FY2022: 24,287

Equity ratio

%79.1
80.9

FY2021: 23,775

Net assets per share
Yen402.18
393.88* 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 FY2023 are not decided because it is difficult at this point in time to reasonably evaluate the impact of
COVID-19 on the business amid uncertainty on when the pandemic is over. 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, 2022
(Based on J-GAAP)

1.

Summary of Consolidated Business Results(1) Summary of business results for the period
The entertainment industry in the fiscal year under review showed slowing growth of the domestic mobile
game market. The competitive environment, however, became even more harsh in both new titles and existing
titles while demand continued to focus on only a few specific titles. In the domestic home-use games market,
hardware sales fell below the level of the previous year due to the impact of the previous year’s launch ofPlayStation®5 and Xbox Series X/S as well as a shortage of parts and components, but sales of softwareremained firm owing to an increase in download sales despite a decline in package sales. The amusement
market showed signs of recovery in the second half of the period under review despite the impact of COVID19, and remained on a recovery trend. In the audio and visual market, while the trend of a shrinking market
for packaged products continues, the video distribution market, which has become firmly established in daily
life, remained buoyant, but competition also intensified, which led to more fierce selection of titles by
distribution service providers. In the live entertainment market, although there are signs of recovery due to thelifting of a state of emergency and other restrictions to prevent infections, the number of customers has not
fully recovered, and the market environment remains severe.
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 businesssegments 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
excitement 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, 2021, to March31, 2022) came to net sales of 25,728 million yen (up 0.8% from the previous fiscal year), operating profit of
4,600 million yen (up 4.2% from the previous fiscal year), ordinary profit of 5,054 million yen (up 10.9%
from the previous fiscal year), and profit attributable to owners of parent of 3,817 million yen (up 16.9% fromthe previous fiscal year).
Results by business segment are described below.
(i) Online Game BusinessIn this segment, sales of long-term operation titles such as “SHINOVI MASTER -SENRAN KAGURA
NEW LINK-,” “Logres of Swords and Sorcery: Goddess of Ancient,” and “Browser Sangokushi”
decreased owing to aging as well as intensified competition in the online market. As a new title, we releaseda smartphone game application titled “The Thousand Musketeers: Rhodoknight” on November 24, 2021,
through distribution. However, the sales fell far short of expectations, and we conducted a partial writedown of software assets based on a review of future earnings. We will strive to improve earnings byreducing the burden of depreciation to continue the services in the future.
As a result, segment net sales totaled 6,221 million yen (down 17.0% from the previous fiscal year), withsegment profit of 601 million yen (down 55.7% from the previous fiscal year).
(ii) Consumer Game BusinessIn the game software sales division of this business, we released “Rune Factory 5,” which is the latest in
the Rune Factory series, for Nintendo SwitchTM in Japan in May 2021, in Asia in September, and in North
America and Europe in March 2022. This became a great hit and as of the end of March 2022, the total
number of units shipped worldwide exceeded 500,000. Furthermore, the latest game in the “No MoreHeroes” series, “No More Heroes 3” was released for Nintendo SwitchTM in August 2021. In Septemberof the same year, the Steam® version of “BOKUJO MONOGATARI OLIVE TOWN TO KIBO NO
DAICHI” was released. Also, PlayStation®4 and Xbox versions of “BOKUJO MONOGATARI SAIKAINO MINERAL TOWN” were released in October and November of the same year, respectively.
Cumulative shipments of both titles exceeded 1 million units. In addition, as cumulative shipments of“TENSUI NO SAKUNAHIME,” which was released in the previous period, exceeded 1 million units,
repeated sales of the existing titles were also strong.
In the amusement division, our kids’ amusement machine “Pokémon MEZASTAR” has performed
extremely well, with the cumulative number of games played exceeding 100 million in December 2021.
In November 2021, “TRYDECK,” a new concept small-prize machine, began operation at amusement
facilities throughout Japan.
-1-Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(Based on J-GAAP)

As a result, segment net sales totaled 15,490 million yen (up 7.0% from the previous fiscal year), withsegment profit of 5,096 million yen (up 22.6% from the previous fiscal year).
(ⅲ) Audio and Visual BusinessIn the audio and visual business, we commercialized the packaged products of TV animation, movies, andrelated events in the Pretty Cure series, including the TV animation “Tropical-Rouge！Pretty Cure” andheld the “Tropical-Rouge！Pretty Cure Thanks Festival” event in February 2022. In addition, the popular
TV animation “The Vampire dies in no time,” which aired from October to December 2021 and “YU-GIOH! DUEL MONSTERS MILLENNIUM SCENES” were commercialized as packaged products andrecorded good sales.
The stage production division performed series plays such as “Touken Ranbu the Stage,” “MUSICAL THE
PRINCE OF TENNIS,” “Musical HAKUOKI SHINKAI,”“Katekyo Hitman Reborn!” the STAGE,“MUSICAL『MORIARTY THE PATRIOT』,” and “Blood Blockade Battlefront” the Stage. Also, “WorldTrigger the Stage” and Musical “Ouran High School Host Club” were performed as complete new playsof this period, and were well received. However, the results of the segment were negatively affected by
COVID-19 because the number of audiences in events was restricted and performances were canceled due
to a prolonged state of emergency.
As a result, segment net sales totaled 4,020 million yen (up 13.2% from the previous fiscal year), withsegment profit of 501 million yen (down 7.2% 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 36,531 million yen, up 3,068 million yen
compared with the end of the previous fiscal year, mainly due to increases in work in process and intangible
assets.
Consolidated liabilities at the end of the period under review totaled 7,557 million yen, up 846 million yen
from the end of the previous fiscal year, mainly due to an increase in accounts payable - trade.
Consolidated net assets at the end of the period under review totaled 28,973 million yen, up 2,222 million yen
from the end of the previous fiscal year, mainly due to the fact that profit attributable to owners of parent of
3,817 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 16,431 million yen, up 28 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 2,820 million yen (down 1,561 million yen compared with theprevious fiscal year), mainly due to a 694 million yen increase in trade receivables and a 2,012 million yen
increase in inventories, despite 5,065 million yen in profit before income taxes.
[Cash flows from investing activities]
Cash used in investing activities totaled 1,094 million yen (down 1,353 million yen compared with theprevious fiscal year), mainly due to purchase of property, plant and equipment of 214 million yen and purchaseof intangible assets of 856 million yen.
[Cash flows from financing activities]
Cash used in financing activities totaled 2,007 million yen (up 5,211 million yen compared with the previousfiscal year), mainly due to the dividends paid of 2,007 million yen.

-2-Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(Based on J-GAAP)

Reference: Trends in cash flow indicators
FY2018
Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market prices (%)
Interest-bearing debt to cash
flow ratio (annual)Interest coverage ratio (times)

FY2019FY2020

FY2021

FY2022

72.2

76.1

76.6

79.9

79.2

184.9

168.4

105.3

155.3

119.3

3.6

2.7

9.0

3.75.7

4,057.6

6,488.9

2,233.0

3,557.5

2,839.2

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 interest is paid on.
Interest payments are based on the interest paid of the consolidated cash flow statement.

(4) Outlook
With regard to consumer games, a completely new zombie survival action game titled “DEADCRAFT” isscheduled to launch the worldwide distribution on multiple platforms in May 2022. In addition, anothercompletely new juvenile RPG titled “LOOP8” for Nintendo SwitchTM/PlayStation®4/Xbox One will be
released in 2022. In addition, the PlayStation®4 version of “BOKUJO MONOGATARI OLIVE TOWN TO
KIBO NO DAICHI,” whose Nintendo SwitchTM version was released in 2021, is scheduled for release in July.
With regard to online games, a new original IP game application for smartphones is now under development
for release toward the distribution in FY2022 in the brand name of “HONEY PARADE GAMES,” which hasdeveloped “SENRAN KAGURA” series.
In the amusement business, sales of our mainstay “Pokémon MEZASTAR” series continued to be strong fromthe previous fiscal year, with the new Tag starting operation on April 21. However, there are concerns thatsales may be affected again depending on the future COVID-19 situation. Although sales of “Pokémon GaOlé” have been affected in some of the operating regions overseas where the number of COVID-19 cases isincreasing, we will continue the overseas development of this title in anticipation of after the pandemic.
In the audio and visual business, an animated TV program titled “Yu-Gi-Oh! GO RUSH!!” was on air from
April 3, and the TV animation “Aoashi” began broadcasting from April 9. From May, a trilogy of “TOUKENRANBU HANAMARU Season 3,” the latest in the amination series “TOUKEN RANBU HANAMARU” isscheduled to be screened in theaters consecutively.
In the stage production division, a new play of “Touken Ranbu the Stage” is scheduled to be staged fromMarch 19 to May 15, and the new play “Musical HAKUOKI SHINKAI” was staged from April 22 to May 5.
In addition, new plays of popular titles such as “MUSICAL THE PRINCE OF TENNIS,” “Stage[Yowamushi
Pedal],” and “World Trigger the Stage” are will be staged. However, the live entertainment market
environment seems to remain severe, as recovery of customers in the market remains uncertain. In addition,
there is a possibility that the performance will be canceled due to the infection of actors/actresses and staff,
and if priority measures such as a declaration of a state of emergency and other orders are taken due to aresurgence of cases of COVID-19, business performance may be significantly affected.
Under these circumstances, business results projections for the fiscal year ending March 31, 2023, are notdecided because it is difficult at this stage to reasonably evaluate the impact of COVID-19 on the businessamid uncertainty on when the pandemic is over. In the future, we will promptly make all relevant information
public as soon as disclosure is possible. The Group will continue to endeavor to create added value that “onlyMarvelous can realize,” provide unprecedented “wonder” and “excitement” to the world as advocated in thecorporate vision, and create innovative entertainment.

-3-