Marvelous Inc.
Stock Code: 7844
(First Section of Tokyo Stock Exchange)

Results Briefing Materials

Fiscal Year Ending March 31, 2019
Third Quarter
January 31, 2019

Contents◆ Fiscal Year Ending March 2019, Third-Quarter Results Summary◆ Segment Results◆ Fiscal Year Ending March 2019, Full-Year Business Forecast

Copyright (c) 2019 Marvelous Inc. All rights reserved.

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Fiscal Year Ending March 2019,
Third-Quarter Results Summary

Copyright (c) 2019 Marvelous Inc. All rights reserved.

3

Earnings Highlights (Statement of Profit and Loss) Continued strong results from the Consumer Game Business and the Audio &Visual Business and revenue recognition of special revenue from sale ofsoftware assets in 2Q contributed to a strong rise in revenues and earnings(Unit: million yen)
3Q FY ended March 2018
Actual3Q FY ending March 2019

Profit ratio

Actual

YOY change

Profit ratio(Amount)(%)

Net sales

17,390-20,193-2,803

116.1%

Cost of sales

7,689-

9,609-

1,920

125.0%

SGA expenses

6,738-

6,373-

-364

94.6%

Thereof advertisingexpenses

1,395-

1,083-

-312

77.6%

Operating profit

2,962

17.0%

4,210

20.9%

1,248

142.1%

27-75-

47

271.3％

2,990

17.2%

4,285

21.2%

1,295

143.3%

Extraordinary profit/loss

25-

-106

-

-132

-

Income taxes

990

-

1,337

-

346

134.9%

Profit attributable toowners of parent

2,025

11.6%

2,842

14.1%

817

140.4%

Non-operating profit/loss
Ordinary profit

Copyright (c) 2019 Marvelous Inc. All rights reserved.

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Segment ResultsHighlights(Unit: million yen)
3Q FY ending
March 2019

ActualActual

YOY change(Amount)(%)

Online GameBusiness

7,298

Consumer●Game Business

5,839

7,913

2,074

135.5%

Audio & VisualBusiness

4,280

5,387

1,106

125.8%

Total

17,39020,1932,803

116.1%●Net sales

3Q FY ended
March 2018●

6,908-389•

Lower revenues from longseller titles•

Insufficient contributions frommost titles released in theprevious fiscal year

94.7%

◆ Consumer Game Business●

Online GameBusiness902877-25

97.2%

●

ConsumerGame Business

1,608

2,651

1,043

164.8%●

Audio & VisualBusiness

1,409

1,678

268

119.1%

Total

3,921

5,207

1,286

132.8%

Company-level costs,etc.

-958-996-38

104.0%

Operating profit total

2,962

4,2101,248

142.1%Segment
profit◆ Online Game Business

Copyright (c) 2019 Marvelous Inc. All rights reserved.

•Solid results in amusementbusiness•

Recognition of special revenue
from sale of software assets◆ Audio & Visual Business•

Strong stage performancesand packaged product sales•

Favorable profit fromsecondary uses
5Development of Net Sales and Operating Profit by Segment(Quarterly)
Unit: million yen (percent of sales)■ Audio & Visual Business

12,000■ Consumer Game Business■ Online Game Business
10,0008,000

912(11.3%)

6,000

1,189(14.2%)

1,459(11.1%)

1,655

2,086(20.6%)(24.8%)(16.9%)

862
1,564

1,897

2,115(20.6%)(24.5%)(26.8%)

945(28.0%)(15.2%)

1,625(21.4%)

4,000
5,479
2,000

(68.1%)

1,303

2,177

(19.2%)

1,318

2,986
1,798

(34.6%)

1,542

1,970

(24.9%)(29.0%)

2,568(33.1%)(61.0%)

4,743(61.0%)

4,403

3,717

3,530

(59.9%)(51.9%)(25.6%)

2,261(32.9%)(21.1%)(29.0%)

2,341(24.1%)(27.8%)(58.0%)(20.6%)

1,164
1,338

5,129

1,799
1,326

2,159

3,051
(38.6%)(36.7%)

2,668

3,048(42.4%)(43.4%)(34.8%)

2,196(31.9%)

4,207(48.7%)

3,295(42.5%)

2,330(48.3%)

2,243

2,724

2,736(42.7%)(34.6%)

3Q

4Q(36.2%)

2,302

2,175

2,430(36.6%)(31.0%)(35.3%)

1Q

2Q

3Q

0
1Q

2Q

3Q

4Q

1Q

Consolidated

FY ended March 2016

2Q

3Q

4Q

1Q

FY ended March 2017

2Q

FY ended March 2018

FY ending March 2019

Net sales

8,045

8,402

7,781

7,591

6,203

6,795

8,637

7,751

4,822

6,192

6,375

7,901

6,296

7,018

6,879

Operatingprofit1,376

1,4641,130

1,446

638

679

2,503

1,932

708

1,055

1,197

2,184

650

2,116

1,443

Note:Totals may not tally to 100% due to rounding of sales percentages to the first decimel point

Copyright (c) 2019 Marvelous Inc. All rights reserved.

6

Segment Results

Copyright (c) 2019 Marvelous Inc. All rights reserved.

7

Online Game Business:
3Q FY Ending March 2019 Progress Status(Unit: million yen)

Results Up Until 3Q FY Ending March 2019
 Lower renenues and eamings as titles released in theprevious fiscal year could not cover the sales declines inlong-seller titles■ Net sales ■ Segment profit
10,000

8,000

1,500

1,200

7,298

6,908
902

Title Performance

6,000 Revenues declined despite robust sales of core long-seller titles"Logres of Swords and Sorcery: Goddess of Ancient" and "Browser
Sangokushi"
 Maintained favorable performance of "SHINOVI MASTER -SENRANKAGURA NEW LINK-" among titles released in the previous fiscal year.
From November, a new service for DMM GAMES versions waslaunched to strong results. Following decision to distribute games inKorea, also decided to roll-out titles in Taiwan, Hong Kong, and Macao

877

900

4,000600

2,000300

0

3Q Fiscal Year 3Q Fiscal Year
ended March
ending March
2018
2019

0

〈Title Rollouts〉
Logres of Swords and Sorcery:
Goddess of AncientBrowser Sangokushi

SHINOVI MASTER-SENRAN KAGURA NEW LINK-(native app)

(PC browser)(native app)

©Marvelous Inc. Aiming Inc.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Launchedon
November29, 2017

Launched
on July 15,
2009

Launched on
December 17,
2013©Marvelous Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

8Online Game Business:
Initiatives Starting in 4Q of FY Ending March 2019
◆ Structural reform to rebuild performance in next fiscal year and the year after
１

Organizational reform

New structures
Creation of structuresthat permit speedy
decision-making

Segregation of decision-making
processes of the Online GameBusiness and Consumer GameBusiness

Vice President
Toshinori Aoki
Consumer GameBusiness

Compilation of new titles with high probability of success

23President
Haruki Nakayama
Online GameBusiness•Promotion of projects based on invitation of external renowned producers•Joint deveropment agreement with Aiming Inc. which has track record of joint
deveropment of the “Logres of Swords and Sorcery:Goddess of Ancient”series•Acquisition of major overseas titles

Review of personnel systems
Implementation of early
retirement preferentialtreatment system(Recruited 40 applicants)

Copyright (c) 2019 Marvelous Inc. All rights reserved.

46
employees
appliedBusiness efficiency enhancement
through fixed-cost compression
and pipeline review
9Consumer Game Business:
3Q FY Ending March 2019 Progress Status(Unit: million yen)

Results Up Until 3Q FY Ending March 2019

◆ In addition to continued strong performance for theamusement business, revenue recognition of special
revenue from sale of software assets in 2Q contributed toa strong rise in revenues and earnings

10,000■ Net sales ■ Segment profit

7,913
8,000

3,200

2,651
5,839
6,000

Title Performance◆ Launched new game software “PEACH BALL SENRAN

4,000

2,400

1,608

4,000

1,600

KAGURA”◆ “Pokémon Ga-Olé” in its 3rd year of operation continues to

2,000

800

mark highest-ever performance level◆ “TRYPOD” performing favorably in domestic and overseas
markets〈Title Rollouts〉

03Q Fiscal Year
ended March2018

PEACH BALLSENRAN KAGURA

Pokémon Ga-OléTRYPOD(Nintendo Switch)(Amusement)(Amusement)

ReleasedonDecember
13, 2018©2018 Marvelous Inc./HONEY PARADE GAMES Inc.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Operations
started inJuly 2016©2019 Pokémon. ©1995-2019 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARV
TM, ®, and character names are trademarks of Nintendo.

3Q Fiscal Yearending March
2019

0Operations
started inNovember
2017©Marvelous Inc.

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Consumer Game Business:
Initiatives Starting in 4Q of FY Ending March 2019 Launched Steam and North America/Europe versions of "SENRAN KAGURA Burst Re:Newal" in January Launched Nintendo Switch version of “Fate/EXTELLA LINK” for Japan in January. Plans to release North
America/Europe and Steam versions in 4Q
 New amusement machines "TRYPOD Big!!" and "WACCA" under development for 2019 launch
Fate/EXTELLA LINKSENRAN KAGURA
Burst Re:Newal(PlayStation®4/PlayStation®Vita/Nintendo Switch/Windows PC)(PlayStation®4/Windows PC)

PS4 and PC
versions
released inNorth
America on
January 22,
2019

PS4 version
released inEurope on
January 18,
2019©2019 Marvelous Inc./HONEY PARADE GAMES Inc. Licensed to and published by XSEEDGames/Marvelous USA, Inc. and Marvelous Europe Ltd.

*Image is of North America version

PS4/PSV/NSversions andPC version
scheduled to bereleased inNorthAmerica/Europein 4Q

NS version
released inJapan onJanuary 31©TYPE-MOON ©2019 Marvelous Inc. Licensed to and published by
XSEED Games/Marvelous USA, Inc. and Marvelous Europe Ltd.

*Image is of North America version

TRYPOD Big!!

WACCA(Amusement)(Amusement)

Operations
scheduled
to start in2019

Operations
scheduled
to start in2019©Marvelous Inc.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

©Marvelous Inc. / Supported by HARDCORE TANO*C

11Audio & Visual Business:
3Q FY Ending March 2019 Progress Status(Unit: million yen)

Results Up Until 3Q FY Ending March 2019

■ Net sales ■ Segment profit

 Revenues and earnings rising on strength in stage
performances and profit from secondary uses

3,000

7,500

Title Performance

6,000 Held performances of latest major series including "MUSICAL
THE PRINCE OF TENNIS 3rd SEASON National Tournament
SEIGAKU vs HYŌTEI," and "Ensemble Stars! On Stage"Festival

4,500

2,400

5,387
4,280

1,678

1,800

1,409
3,000

1,200

1,500600

 Held successful new performance of "REBORN! THE STAGE“ Broadcast the TV anime "Tokyo Ghoul:re" (Stage 2)
 Released movie "Hug! Pretty Cure, Futari wa Pretty Cure theMovie" in October; plans to launch Blu-ray/DVD in March

00

3Q Fiscal Year 3Q Fiscal Year
ended March ending March
2018
2019

〈Title Rollouts〉
MUSICAL
THE PRINCE OF TENNIS
3rd SEASON
National Tournament
SEIGAKU vs HYŌTEI

TV anime”Tokyo Ghoul:re”(Stage 2)“Ensemble Stars! On Stage”
Festival

Publicperformancesin Jul. – Sep.
2018

Publicperformancesin September
2018(booked in 3Q)(booked in 3Q)©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECT©2016 Happy Elements K.K／Ensemble Stars!
STAGE PROJECT

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Movie "Hug! Pretty
Cure, Futari wa PrettyCure the Movie"

REBORN! THE STAGE

Publicperformancesin Sep. – Oct.
2018
(booked in 3Q)© Akira Amano／Shueisha© REBORN! THE STAGE PROJECT

Broadcast inOctober
2018©Sui Ishida/Shueisha,TokyoGhoul:re Production Committee

Released inOctober
2018;
BD/DVDscheduled
for release inMarch 2019

Ⓒ2018 Hug! Pretty Cure the Movie Production Committee

12Audio & Visual Business:
Initiatives Starting in 4Q of FY Ending March 2019
 In stage, consistent performances of the newest works in popular series;
new performances being prepared for next fiscal year In anime, begin broadcasting new series for Pretty Cure in February; themovie scheduled for MarchMUSICAL THE PRINCE OF TENNIS
3rd Season SEIGAKU vs SHITENHOJI"Ensemble Stars! Extra Stage“～Memory of Marionette～

Publicperformancesin Dec. 2018 –Feb. 2019

Publicperformancesin Dec. 2018 –Feb. 2019©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECT©2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECT

Star☆Twinkle Pretty CureBroadcast
scheduledforFebruary
2019©Toei Animation. All Rights Reserved

Copyright (c) 2019 Marvelous Inc. All rights reserved.

K THE STAGE-RETURN OF KINGS-

Publicperformancesscheduled forMarch 2019

© GoRA・GoHands/k-project© GoRA・GoHands/stage k-projectPretty Cure Miracle Universe the Movie

Releasescheduledfor March2019©2019 Pretty Cure Miracle Universe the Movie Production Committee13

Fiscal Year Ending March 2019,
Full-Year Business Forecast

Copyright (c) 2019 Marvelous Inc. All rights reserved.

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Fiscal Year Ending March 2019, Business Forecast(Unit: million yen)
FY ended March 2018

FY ending March 2019

ActualForecast

Profit ratio

Profit ratio

YOY change(Amount)(%)

Net sales

25,291－25,000

－-291

98.8%

Operating profit

5,147

20.4%

4,500

18.0%

-647

87.4%

Ordinary profit

5,105

20.2%

4,500

18.0%

-605

88.1%

Profit attributable toowners of parent

3,513

13.9%

2,980

11.9%

-533

84.8%

35,00010,00031,82029,387
26,441

28,00020,33021,0005,418

17,5794,412

14,00025,291

25,0005,754

6,000

5,147
4,500

3,006

10,423

8,000

4,000

2,329
7,000

1,044

2,00000
FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ended March FY ending March
2012
2013
2014
2015
2016
2017
2018
2019 (Forecast)

Copyright (c) 2019 Marvelous Inc. All rights reserved.

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Thank you very much for your attention.
Inquiries
Administration Division, Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL: https://corp.marv.jp

This document contains forward-looking statements which are based on information currently available to the Company
and which may change as a result of numerous factors including the macroeconomic environment and industry trends
relevant to the Company. Therefore, these forward-looking statements are made subject to certain risks and uncertainties
which could cause results including actual business performance to differ materially from those presented.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

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