Fiscal Year Ended March 31, 2022
Financial Results Presentation Materials

Drecom Co., Ltd.
May 11, 2023
Please refer to the Fact Sheet on our website for consolidated financial results, cost of sales, SG&A expenses, etc., andbilling sales in the game business.
https://drecom.co.jp/ir/factsheet_202303Q4.pdf

Summary of this document

Review ofl Full year results: Record-high operating income and Ordinary income due to strong
performance of mainstay IP titles, etc.
••

FY2022
financialresults

Sales: 10.8 billion yen (+2.6% YoY), Operating income: 2.281 billion yen (+43.4% YoY)
Ordinary income: 2,192 million yen (+42.2% YoY), Net income*: 1,159 million yen(+43.6% YoY)

Q4 results: Existing long-term running titles secure stable earningsl• Sales: 2,420 million yen (-1.2% YoY), Operating income: 180 million yen (+5.6% YoY)

Forecast for
FY2023Business
Progressl Aggressive investment from a medium-term perspective to achieve continuous sales
growth in the future• Consolidated full-year forecasts:
Sales 15.0 billion yen (+38.9% YoY) Operating income 2.0 billion yen (-12.3% YoY)
Ordinary income: 1.9 billion yen (-13.3% YoY) Net income*: 1.1 billion yen (-5.1% YoY)

l Steady progress in content development and IP nurturing initiatives••

Multimedia extension development of the popular IP "Wizardry“, which we acquired in 2020,
is underway.
“DRE Novels”, Drecom Media's light novel label, is publishing a few new titles monthly.

Copyright Drecom Co., Ltd. All Rights Reserved.

*Net income attributable to owners of the parent

2

1. Review of FY2022 Financial Results
2. Forecast for FY2023
3. Medium-Term Goals
4. Appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

31. Review of FY2022 Financial Results

Summary of Financial Results for FY2022
Revised full-year forecasts at the time of Q3 results announcement due to changes in the release dates of the three
titles that were scheduled for release during the FY2022.
Record-high operating income and ordinary income in FY2022 due to strong performance of mainstay IP titles, etc.
(Unit: million yen)

FY2021

FY2022 Full year results
Forecast at
beginning of term

Revised forecast

ActualActualNet sales

13,00010,70010,80010,528Operatingincome

2,000

2,200

2,281

1,591

Ordinary
income

1,900

2,100

2,192

1,541

1,200

1,100

1,159

807

Net income

attributable toshareholders of theparent company
Copyright Drecom Co., Ltd. All Rights Reserved.

41. Review of FY2022 Financial Results

Topics of each business FY2022

Game
business•

Mainstay IP titles performed well throughout the year and contributed to earnings.

•

Existing long-term operating titles also secure stable income.
→ Profitability improved due to streamlining of the operation system and closing of some unprofitable
titles.

•Release dates of the three new in-house distribution titles we had assumed for March 31, 2023 havebeen changed.
→ Sales and advertising expenses expected for the new titles were postponed to FY2024.
→ GGGGG was released at the end of March 2023, and was in operation for one day in FY03/2023,
therefore, the costs were incurred in advance.

Mediabusiness•

In the publishing and video domain, DRE Novels, Drecom Media's light novel label, was launched.
→ Monthly publication began in October 2022. Fourteen titles have been published to date.

•In the Web3 area, GGGGG NFT skin was published. Several other projects are also in progress.
→ Sports3 (=Web3 x Sports), Wizardry BCG (tentative), and others are being prepared for release.

•

Continue to develop/provide new services utilizing know-how from existing businesses.
→ “Rooot”, a fan community promotion service and “load testing service“ are in operation.

Copyright Drecom Co., Ltd. All Rights Reserved.

51. Review of FY2022 Financial Results

Summary of Q4 Results for FY2022
Q4 (Jan-Mar) slightly exceeded the revised forecast due to the continued strong performance of existing long-term
titles.

(Unit: million yen)

FY2022
Q1(Apr-Jun)

Net sales

Q2(July-September)

Q3(Oct-Dec)

Q4(Jan-Mar)

Full year

2,927

2,873

2,579

2,420

10,800Operating income

817

790

492

180

2,281

Operating income ratio

27.9%

27.5%

19.1%

7.5%

21.1%

909

875

556

209

2,550

31.1%

30.5%

21.6%

8.7%

23.6%

810

737

477

167

2,192

521

534

110

-7

1,159

EBITDA*EBITDA Margin

Ordinary income
Net income

attributable toshareholders of the parent
company
Copyright Drecom Co., Ltd. All Rights Reserved.

*EBITDA = operating income + amortization of goodwill + depreciation

61. Review of FY2022 Financial Results

Q4 Results for FY2022 (Operating Income QoQ Comparison)R&D and other expenses are expected to precede in the future due to investments being made in new business areas
such as Publishing and Web3.
(Unit: million yen)

Decrease in revenues (Increase in expenses)
Increase in revenues (decrease in expenses)

Sales
Decrease
Impact(-122)

Labor cost
(+23)

492

Q3 FY2022
Operating
IncomeAdvertisingexpenses(-34)

Outsourcing
expenses(+119)

Postage(-3)

Depreciation
expense(-34)

Materials forgame
development
(-20)

Game
development
costs
Amount recorded
R&D
as assets*.
expenses
(-92)
(+81)

Other
(+35)

180

Q4 FY2022
Operating
Income*Amount of development costs such as labor and subcontracting costs mainly related to pre-release games deducted from manufacturing costs and transferred to assets as "Software in progress".
Copyright Drecom Co., Ltd. All Rights Reserved.

71. Review of FY2022 Financial Results

Game Business: Q4 Earnings from Titles in Operation
Long-term operational titles maintained stable earnings. All titles except for newly released ones are profitable.
Profit/loss of 11 titles under management* (Q4 Jan-Mar 2023)

Loss

Profit*Number of titles in operation as of March 31, 2023. Series titles and titles developed for overseas are counted as one title. Including two enza titles and BOKU & DRAGONS.
Copyright Drecom Co., Ltd. All Rights Reserved.

8

1. Review of FY2022 Financial Results
2. Forecast for FY2022
3. Medium-Term Goals
4. Appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

92. Forecast for FY2022

Summary of Forecasts for FY2023
We are actively investing in developing new games/services to achieve continuous sales growth in the future.
(Unit: million yen)

FY2023

FY2022
Full year

YoY

ActualNet sales

15,000+38.9%.

10,800

Variable cost

2,881

+107.8

1,386

Fixed cost

10,119+41.9%

7,132

1,341

+543.6%208

951+168.3%.

354-2,422+21.2%-1,9992,000-12.3%

2,281

13.3%

-

21.1%

1,900

-13.3%

2,192

1,100

-5.1%

1,159

Advertising expenses
R&D expenses
Game development costs
recorded as assets*
Operating income
Operating income ratio
Ordinary income
Net income

attributable to shareholders of the parent
companye

Copyright Drecom Co., Ltd. All Rights Reserved.

*Amount of development costs such as labor and subcontracting costs mainly related to pre-release games deducted from manufacturing costs
and transferred to assets as "software in progress".

10

2. Forecast for FY2023

Forecast for FY2023 versus previous fiscal year
Increase in advertising, R&D, and other expenses resulting from release of new titles and launch of new businesses.
(Unit: million yen)
Decrease in sales/profit

Operating income

Net sales

Increase in sales/profit
Growth of
new business(Publication/Video,
Web3, Others)

Impact ofexisting gamebusiness

Contribution by
new titles

Investment in
new business(Publication/Video,
Web3, Others)

15,0002,281

10,800+4,200

FY2022
ActualCopyright Drecom Co., Ltd. All Rights Reserved.

Impact ofexisting gamebusiness

Contribution by
new titles

2,000

-281

FY2023
Forecast

FY2022
ActualFY2023
Forecast

11

2. Forecast for FY2023

FY2023 Full-Year Results Approach
Existing titles:
Stable revenues were secured from multiple long-term titles despite some impact from termination of operations

Gamebusinessof some titles.

New titles:
Three new titles to be released (in-house IP), two of which are expected to contribute to earnings
from the current fiscal year.
•
GGGGG, released March 31st, 2023, is an experimental title that includes new initiatives.
Continuing with a medium-term perspective.
•
Scheduled to be released this fiscal year:
DACHIMEN DENSETSU G (developed by studiorex Co., Ltd.)
Wizardry Variants Daphne
Evil Prince and the Puppet (This is expected to make a full-fledged contribution to business results in the next fiscal year.)•All new titles are in-house IP titles that are recorded on gross basis, so the impact on sales is significant.
•Expect to see an increase in operational expenses, advertising, etc. from the release of new titles.

R&D and other expenses are expected to increase in line with the launch of new business areas.

Mediabusiness

Publishing/Video: Plan to launch a comic/webtoon label following a light novel label.
Web3: Plan to release several projects including Wizardry BCG (tentative)" and an NFT project.
Other New Initiatives: Continued development/provision of new services utilizing know-how from existing businesses is planned.

Investment
policyInvest within the cash flow generated from operating activities to ensure that we are in a position to continue
to meet the challenge.

Copyright Drecom Co., Ltd. All Rights Reserved.

122. Forecast for FY2023

FY2023 Investment Policy
Aggressively invest for growth within the scope of cash flow generated from operating activities.

FY2022 Actual

FY2023 Forecast(Unit: million yen)

(Unit: million yen)

Break
down

ゲーム
Game

R&D
expenses
Depreciation (+354)
andamortization(+269)

Publication
出版・映像
Video

Web3

R&D
expenses(+951)

その他
Other

354

Depreciation
andamortization

R&D expenses

2,260

1,999 Gamedevelopment costs
recorded asassets*.

FY2022
Operating income

Game
ゲーム

951

Tax
(-644)

2,281

Break
down

Investable Investment
cash

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Tax

2,000

FY2023Operating income Forecast

Publication
出版・映像
Video

Web3

その他
Other

R&D expenses

Gamedevelopment costs
2,422 recorded asassets*.

Investable
Investment
cash*Amount of development costs, such as labor and subcontracting costs, mainly related to pre-release games, deducted from manufacturing costs and transferred toassets as "software in progress".

13

2. Forecast for FY2023

Image of progress in the first quarter of FY2023
In Q1 (April-June), the company plans to hold an anniversary event for its mainstay title and to release one new inhouse distributed title.
Sales expansion and profit contribution from new titles are expected to start mainly in the second half of the fiscal year.
■Q1 Progress Image
Sales: Anniversary events are scheduled to be held for mainstay titles.
One new in-house distributed title to be released, expected to contribute from Q2 onward.
Operating income: Increase in advertising, R&D, and other expenses for new titles and new businesses is expected.

Net sales

OperatingincomeFull-year forecast:

Q1 Progress
image

15,000 million yen

Full-year forecast:

2,000 million yen

Q1 Progress
Image
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141. Review of FY2022 Financial Results
2. Forecast for FY2022
3. Medium-Term Goals
4. Appendix

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15

3. Medium-term Goals

Medium-term Goals
Current Drecom

Medium-term goal
Original IP

Original

Increase number of in-house IPs by acquiring,developing and nurturing original IPs

A mobile game company
with strength indevelopment andoperation of IP games

Diversification

Entertainment

Diversify in other entertainment businesses
such as publishing, anime, movies, etc.

GlobalGlobal

A comprehensive
entertainment company
that provides a wide variety ofentertainment content
globally based on
IP x technology

Expand contents globally

Technology

Technology

Aim to create new businesses withadvanced technologies.

Copyright Drecom Co., Ltd. All Rights Reserved.

16

3. Medium-term Goals

Medium-term Goals (continued)
To become a global comprehensive entertainment company offering a wide variety ofentertainment content based on IP x technology.
(1) Continuously acquire, develop, and nurture IPs and aim for multimedia development
By utilizing the company's IPs across businesses, we aim to create more revenue streams.

(2) Make the existing game business stronger
•
•
•
•
•

Additional investment in existing titles andreinforcement of the system.
→ Securing long-term stable earnings.
Multilingual support, global distribution.
Increase in in-house distribution and original titles.
Increase in revenue other than “Free to Play/Pay toWin” type games.
Development of one-time purchase PC/Console titles→ Diversification, layering of revenue
sources, portfolio expansion, and etc.

(3) Launch new businesses other than games•

Light novels, comics, webtoons, etc,
Building a publishing house function→ Continuously create and nurture contents.

•

Anime creation of in-house IPs, investment inproduction committees, and etc.
Entry into the motion pictures & animation field.
→ Strengthen IP production capabilities.

4) Aim for dramatic growth through initiatives using advanced technologies such as Web3
Continuous development/provision of new services utilizing existing business know-hows and advanced technologies.
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17

3. Medium-term Goals(1) In-house IP development roadmap example: Publishing
Create more revenue streams by nurturing both acquired and developed in-house IPs and utilizing them acrossbusinesses.

Example: An ideal case in publishing and video business
Creating a game, goods, andLicense the rights out

Turning a comic, novel, etc.
into an animated movie
Visualization

Started publishing
Light novels

Comic/webtoon adaptation
Serialization and bookreleases

1st year
Copyright Drecom Co., Ltd. All Rights Reserved.

1st~2nd year

3~4th year

After 3~4 years*Image of IP value enhancement183. Medium-term Goals(1) In-house IP development status: Wizardry
Acquire copyrights and trademarks of a popular IP and then enhance the IP value through multimedia
development.
•

From 2022 onward - (planned)
Novelization and comic book adaptation by Drecom Media

Blade & Bastard•

Mobile Gaming

Wizardry Variants Daphne•••

Blade & Bastard- Ashes are Warm, Labyrinths are Dark ‒Blockchain Gaming
Wizardry BCG (tentative)

From 2020
Drecom acquired trademark rights.
Announced to develop a mobile game.

From 2009
Gamepot, Inc. acquired trademark rights.
Derivative Series Development••

blockchain game•
1981~. •First game released for PC.
Series development until about 2001
1981
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2009

Year 2020

Wizardry Variants Daphne

Wizardry BCG (tentative)

After 2022

Image of IP valueenhancement193. Medium-term Goals(1) In-house IP development status: Evil Prince and the Puppets
Initiatives to create fan communities from SNS operations, nurture IP, and develop it in multiple areas, including
goods creation and game development.
110,000 Twitter followers as of March 2023.

2023 (scheduled)
Mobile game release.
November 2022
Game information released
Real Event Exhibit
April 2021
Goods are now on sale at the official online store.
November 2019
Project Announced

Approx. 100,000

Approx. 60,000

SNS followers: approx. 10,000
2019

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2021

2022

2023 and beyond

Image of IP value enhancement203. Medium-term Goals(1) In-house IP development status: Overview
Engaged in multiple development activities for Wizardry and Evil Prince and the Puppets. Aiming to continuously
create and develop IPs in the future.
IP to advance theMultimedia Development

In operation/released

Under development and pre-release
Wizardry Variants Daphne(Mobile Game)

Blade & Bastard - Ashes are warm, labyrinths are dark
(Light Novel)
Wizardry

Wizardry series titles (PC/console games)

Online Shop
(Goods)Evil Prince and the Puppets

blockchain game

Wizardry BCG (tentative)(blockchain game)

Evil Prince and the Puppets(Mobile Game)

IPs that are candidates for future development

Publishing and Video

Game area

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Troubles with exorcist daughter Nicola (light novel)
And 14 other series

Chokotto Farm (mobile game)
BOKU & DRAGONS (mobile game)
NEKO & DRAGONS (mobile game)
GGGGG (mobile game, NFT)DRE Comics (comics)
DRE STUDIOS (webtoon)

Dachimen Densetsu G (mobile game)
Tokyo Stories (PC/Console game)
Unannounced title (mobile game)21

3. Medium-term Goals(2) Game Business: Market Overview and Our Business Strategy
As the domestic mobile game market matures, we will make investments that are not an extension of the past inorder to further strengthen our business foundation.

Maturation of the domestic mobile game market
ü Smartphone-owning population reaching the ceilingü Competition with other contents such as videos,
comics, social networking sites, etc.
ü Users are fixated on long hit titles■Additional investment in titles underoperation and strengthen the system•

Size of Japan's mobile game market and smartphone ownershipmaturation

100,000,000 yen

14,000Strategy of our game business

•
%

100

Re-examine the development potential of each title
without assuming attenuation.
Renovation and maintenance to withstand long-term
operation.

90

12,00080

10,000

70
60

8,000

50
6,000

40
30

4,000

20

2,000

10

0

0

Expansion into growing global markets.
Deployment to other platforms such as PC/Consoles.
Introduction of revenue models other thanFree to Play/Pay to Win types such as one-time purchase.

測
)

年

20

22

20

年
(予

21

年

20

•
•
•

2020 2021 2022 (Forecast)

20

年

20

19

年

20

18

年

20

17

年

20

16

年

20

15

年

20

14

年

13

20

20

12

年

2012 2013 2014 2015 2016 2917 2018 2019

■Diversification and layering ofrevenue sources

Mobile Game Market Size

Source: Famitsu Game White Paper, Ministry of Internal Affairs and Communications White Paper on Information and Communications
Copyright Drecom Co., Ltd. All Rights Reserved.

22

3. Medium-term Goals(2) Game Business: In-service and under development titles
Secure long-term earnings by making additional investments for the existing titles.
Aim for diversification with the release of five new titles with different initiatives.
2011 - 2022

2023 onwards

Titles underoperation
Additional
investment→ Long-term stableprofitability

11*

Title underdevelopment

Scheduled to be released in FY2023: 3 titles• DACHIMEN DENSETSU G(developed by studiorex Co., Ltd.)• Wizardry Variants Daphne• Evil Prince and the Puppets

5

Scheduled to be released in FY2024 or later: 2 titles• Unannounced title (developed by Drecom)• Location-based IP titles using “AROW”

New Initiatives
in each new title→ Diversification.

* Series titles and titles developed overseas are counted as one title. Titles for PC and consoles are not included.
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23

3. Medium-term Goals(3) New Businesses: Comics/Anime Businesses Market Overview
The comic market has grown significantly in recent years due to the growth of electronic distribution. The animation
market has also seen the growth mainly due to the increase in overseas sales and increased distribution platforms.

Comic book market(Unit: 100 million yen)Animated cartoon market

Estimated domestic comic book sales(Unit: 100 million yen)

8,000

30,000Growth through digitization

Growth due to the spread of webtoon, etc.

7,000

25,000Japanese animation related markets, market trends by window

Overall animation market growth
Growth due to expansion of streaming
services, etc.

6,000
2,645
5,000

2,291

Paper
33.8%

20,000

at
Anim

2,706

4,000

15,000

2,387

3,000
3,569

3,268

2,963

2,583

E

2,000

A

2,403

GR

10,000

4,114

4,479

3,420

1,000
887

1,169

1,491

1,747

2,002

5,834

R 8.3

13,13412,00912,394

7,677

9,948

E-book
66.2%

2,593

2014
2015
2016
2017
2018
2019
2020
2021 2022年
2022
2014年
2015年
2016年
2017年
2018年
2019年
2020年
2021年
Source: "Shuppan Getsuppo," Institute of Publication Science, Japan Association of National Publishers

3,194
2,981

3,286

3,408

3,384
3,209

3,282

2,687

2,835

2,630

5,868

5,819

595

685

930

1,543

2018年
2018

2019年
2019

2020年
2020

2021年
2021

2,818

6,552

5,794

5,522

5,037

5,003

340

408

437

478

540

2013年
2013

2014年
2014

2015年
2015

2016年
2016

2017年
2017

2,427

5,943

5,985

160
2012年
2012

3,056

3,199

2,941

2,026

2,426

5,000

0

0

3,058
3,164

2,863

Overs
eas
47.9%

10,092

2,823

2,412 22.4

sC
mic
o
c
-

3,266

AG
ket C
r
a
ion m

6,631

Domestic-Distribution
Streaming

Domestic - Commercialization

Domestic-Amusement

Domestic-Others

Domestic
52.1

Overseas
Copyright Drecom Co., Ltd. All Rights Reserved.

Source: "Animation Industry Report 2022" Japan Animation Association

24

3. Medium-term Goals(3) New Businesses: Status of Publishing and Video BusinessWe started releasing light novels in October 2022 and aim to acquire leading authors and works through newcomerawards, etc.
The business is led by a group of people frompublishing companies and video makers.
Four labels are launched.

A light novel label focusing on web-originated
newly written works launched in October 2022.

A comic book label focusing on comic book
adaptation of "DRE Novels“. To be launched in
2023.
A webtoon label that aims to create high-quality
original works for the world. First issue scheduled
in 2023.

A label that do animation planning and production.

The 2nd Drecom Media Awards.
Aim to expand the scale, and discover leading artists andworks.

Application Period : June 9, 2023 (Friday) - September 8,2023 (Friday)
Announcement of winning entries: February 9, 2024
(Friday)(scheduled)Award-winning works secure the following developments
Book publication in DRE Novels (paperback and e-book)
Comic book (paperback and e-book) in DRE Comics
PV and voice dramatization at DRE PICTURESDRE STUDIOS Award winners secure the following
developments
Webtoonization at DRE STUDIOSPV and voice dramatization at DRE PICTURES*All prizes are subject to selection by the judges.
"The 2nd Drecom Media Awards" official website
https://drecom-media.jp/award

Copyright Drecom Co., Ltd. All Rights Reserved.

25

3. Medium-term Goals(4) Aim for dramatic growth through initiatives such as Web3
Started initiatives in areas with high compatibility to existing businesses. Aim to promote growth strategies throughEntertainment x Web3
Initiatives in the Web3 domains
Existing Initiatives

Game Business

Blockchain game
・FT+NFT × Game

Mobile game
Development and Operation(e.g. Wizardry BCG (tentative)

・FT × Game
・NFT × Game(e.g., GGGGG)

Publishing andVideo business

B to B business

M&A, Investment

Webtoon, Animation
Light novels, Comics

Fan Community Promotion Services

Load Testing Services

M&A of game development
companies
IP Acquisition Investment

Copyright Drecom Co., Ltd. All Rights Reserved.

X Web3

NFT
Business support forWeb3 area (e.g., Sports3)
Investment in web3 areas26

3. Medium-term Goals(4) Purpose of entry into the entertainment x Web3 areas
Aim to create a system that benefits both users and management by combining FT/NFT and existing digitalentertainment content to form a secondary distribution market
Example: Online game x Web3
Web 2.0
General online games
Diamond(In-gamecurrency)

Diamondsecondary distribution market(In-game currency)

A system that benefits both users andmanagement

×x-FT

Weapons andArmor(In-game item)

Cryptocurrency
exchange→

From the user's perspective,
Easy to buy items because you can sell themwhen you no longer need them.
New entertainment will be created from the price movements ofsecondary distribution, buying and selling.

XX Sword(In-game item)xNFT

Copyright Drecom Co., Ltd. All Rights Reserved.

NFT
marketplace

From the management perspective,
Primary sales will become more active.
Commission income from secondary distribution also
contributes earnings.

27

3. Medium-term Goals(4) Purpose of entry into the entertainment x Web3 areas
Web3 creates a highly engaged fan community where users are a part of the project.

Old Entertainment (Web 2.0)
management

Entertainment x Web3
management

contents
offering

payingusers

contents
users andtoken holders

Ø The relationship with the management is one-way.

Ø Users are also a part of the project as investors

Ø Community formation is spontaneousØ Highly engaging fan communities are formed.

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28

3. Medium-term Goals(4) Status of the Entertainment x Web3 initiative
The GGGGG NFT initiative got off to a good start, with the planned NFTs sold out, and an active secondary market.

Wizardry BCG (tentative)

GGGGG NFT•

NFTs were sold in conjunction with thegame release (Minting is free)•

All planned NFTs sold out. Ranked
among top for transaction volume in thesecondary market.
Discord community has about 20,000
members; NFT holders also play gameswith high enthusiasm.

•

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Sports3•

Wizardry BCG (tentative) signs a joint
venture agreement with Turingum K.K.
as a new production partner.

•

Project launched in February 2023.
Initiative to solve problems in the
sports industry with Web3.

•

Refer to the press release May 11, 2023:
https://drecom.co.jp/pr/2023/05/2023051
1-01.php•

Co-created with an Olympic silver
medalist in fencing, Yuki Ota.

•

We support issuing NTFs, community
management, etc.
29

3. Medium-term Goals

Aim to scale up for the next three years
We are in a phase to aim for a virtuous cycle of sales/earnings expansion by aggressively investing cash
generated from the game business.

FY2024 ‒ FY2025
Sales: CAGR over 20%
Operating margin: Maintain around 15%

FY2023
Sales: 15 billion yen
Operating income: 2 billion yen

GrowthGrowthGame
Publication
Animation
Copyright
acquisition
Web3

GrowthGame
Publication
Web3

Investment

Game
Publication
Animation
Web3

Growth driver• Three new games••

Light novels/Comics
webtoon••

NFTs
Blockchain game

Growth driver• New games• Light novels/Comics• webtoon• Animation/Video

ProfitShareholder
returnCopyright Drecom Co., Ltd. All Rights Reserved.

Investment• NFTs• Blockchain game

Shareholder
returnProfitInvestment

Growth driver• New games• Light novels/Comics• webtoon• Animation/Video• NFTs• Blockchain Games• Rights management• Global Expansion

ProfitShareholder
return30

1. Review of FY2022 Financial Results
2. Forecast for FY2022
3. Medium-Term Goals
4. Appendix

Copyright Drecom Co., Ltd. All Rights Reserved.

31

4. Appendix

Game Business: Pipeline of operational and under development titles
Six main development projects underway as of March 31, 2023
Business

StatusDefinition

Number of projects

Operation

Titles in operation11

Ø Other company distribution: 6 titles
Ø In-house distribution: 5 titles

Game
Business

Development•

Titles underdevelopment with aprospect for
releaseCommercialized
development

Prototype

Details

DACHIMEN DENSETSU G (developed by studiorex Co., Ltd→ Adult prank RPG. Release in May 2023•

5

Titles for
Smartphones

Wizardry Variants Daphne→ 3D dungeon RPG. Release in 2023•

Evil Prince and the Puppets→ Dark fantasy adventure. Release in 2023

Titles for PC andconsoles1

Titles at a stage
beforecommercialization
development

Several•Unannounced title (developed by Drecom Co., Ltd.)•

Location-based IP title using “AROW”•

Tokyo Stories -working title→ 3D Adventure. Scheduled for release in 2023

Ø Multiple projects in progress*Series titles and titles developed overseas are counted as one title.
Copyright Drecom Co., Ltd. All Rights Reserved.

32

4. Appendix

New title status: GGGGG released March 31, 2023
An experimental title that pursues new experiences on mobile phones as the next-generation "5G" communication
standard begins service.
GGGGG(g-g-g-g-g-)

•
•
•
•
•
•
•

Genre: Cooperative and competitive action game
Release date: March 31, 2023
Supported platforms: iOS/Android
Price: Free for basic play (with in-game purchases)
Development/Distribution/Operation: Drecom Inc.
Countries of distribution: 172 countries and regions
worldwide, including Japan
Copyright Notice: ©Drecom Co., Ltd.

Copyright Drecom Co., Ltd. All Rights Reserved.

33

4. Appendix

New title status: DACHIMEN DENSETSU G pre-registration is open
A new title from studiorex, a group company that develops and operates BOKU & DRAGONS and NEKO & DRAGONS.
Utilizing our operational know-how. Scheduled for release in May 2023.
DACHIMEN DENSETSU G

•
•
•
•
•
•
•

Genre: Adult prank RPG
Release date: May 2023 (planned)
Supported platforms: iOS/Android
Price: Free for basic play (with in-game purchases)
Development/Distribution/Operation: studiorex Co., Ltd.
Country of distribution: Japan
Copyright Notice: ©studiorex Co., Ltd.

Copyright Drecom Co., Ltd. All Rights Reserved.

34

4. Appendix

New Title Status: Wizardry Variants Daphne
We acquired copyrights and trademarks of a popular IP and started developing original titles.To be improved based on
the results of the closed test. Scheduled to release in 2023.
Wizardry Variants Daphne

•
•
•
•
•
•
•
•

Genre: 3D dungeon RPG
Release date: 2023 (planned)
Supported platforms: iOS/Android
Price: Free for basic play (with in-game purchases)
Development/Distribution/Operation: Drecom Co., Ltd.
Country of distribution: Worldwide(Japan and overseas)
Supported languages: Japanese/English*At the time of distribution

Copyright Notice: ©Drecom Co., Ltd.

Copyright Drecom Co., Ltd. All Rights Reserved.

35

4. Appendix

Revenue status of titles in operation (by release date)
The game business is not dependent on a small number of hit titles, but rather on the accumulation of multiple titles
to generate revenue.
Total sales of titles under operation
2011

FY2020

2014

2015

2016

2017

FY2021

2018

2019

2020

Total business pro_t of titles under management
2021

FY2022

2022

2023

2011

2014

FY2020

2015

2016

2017

2018

FY2021

2019

2020

2021

2022

2023

FY2022*Please refer to the fact sheet posted on our website for consolidated business performance trends, cost of sales, SG&A expenses, etc., and game business billing sales trends.
https://drecom.co.jp/ir/factsheet_202303Q4.pdf
Copyright Drecom Co., Ltd. All Rights Reserved.

36

4. Appendix

List of game titles in operationGame title

Distributor

Service start date

Chokotto Farm

Drecom Co., Ltd.

Jan 2011

ONE PIECE Treasure Cruise

BANDAI NAMCO Entertainment Inc.

May 2014

BOKU & DRAGONS

studiorex Co., Ltd. *Feb 2015

Derby Stallion: Masters

Drecom Co., Ltd.

Nov 2016

Everybody's Golf

Forward Works Corporation

Jul 2017

THE IDOLM@STER SHINY COLORSBANDAI NAMCO Entertainment Inc.

Apr 2018

NEKO & DRAGONS

studiorex Co., Ltd.*Apr 2019

Super Robot Wars DD

BANDAI NAMCO Entertainment Inc.

Aug 2019

Disgaea: Hour of Darkness RPG

Forward Works Corporation

Nov 2019

New Japan Pro-Wrestling Strong Spirits

Bushiroad Inc.

Feb 2022

GGGGG

Drecom Co., Ltd.

Mar 2023*studiorex, Co., Ltd. joined our group in March 2020.
Copyright Drecom Co., Ltd. All Rights Reserved.

37

4. Appendix

Glossary
Terminology

Meaning

Games distributed in-house

Games for which Drecom is the distributor. We are in charge of game planning, development, advertising,and sales.

Games distributed by other companies

The game is distributed by another company, and Drecom is in charge of development as a partnering company.

Platformer

Apple, Google, and other companies that provide service infrastructure systems to users and third parties.

Gross sales

The amount of money paid by the user to the distributor, Drecom.

Net sales

The amount of money distributed from the distributor to the developer, Drecom.

Developer

A company responsible for the development of games.

Amount of game development costs
charged to assets

Amount of development costs, such as labor and subcontracting costs, mainly related to pre-release games,
deducted from manufacturing costs and transferred to assets as "Software in progress".

Research and development expenses

Costs associated with planning and creating prototypes for new games and services.

IP

Abbreviation for Intellectual Property.

Commercialized development

Game development is in full swing.

Anniversary Events

Every six months and a year, an event is held that boosts the game. The number of active users and sales often
rise compared to normal times due to the introduction of many new measures and contents

Copyright Drecom Co., Ltd. All Rights Reserved.

38

For trends in consolidated financial results, cost of sales/ SG&A expenses, etc., and sales of game business billing,
Please see the fact sheet posted on our website, https://drecom.co.jp/ir/factsheet_202303Q4.pdf

Among the perceptions, strategies, plans, etc., described in this document, the outlook is not a historical fact but contains uncertain
elements. Actual results may differ materially from those in the forward-looking statements for a number of reasons. Important factorsthat may affect actual business results include, but are not limited to, economic conditions surrounding our business, social trends,
and changes in relative competitiveness due to demand trends for the services we provide.