Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2024
(Six Months Ended September 30, 2023) (Based on J-GAAP)

October 31, 2023
Company name: Marvelous Inc.
Listing: Tokyo Stock Exchange
Stock code:
7844
URL: https://corp.marv.jp/english/index.html
Representative:
Suminobu Sato, President
Contact:
Chihiro Noguchi, Director, General Manager of Corporate Division
E-mail: ir@marv.jp
Scheduled date of filing Quarterly Securities Report: November 2, 2023
Scheduled commencement date of dividend payout: –Explanatory documents supplemental to the abridged Quarterly Financial Statement:
Yes
Quarterly Result briefing: None
(All amounts are rounded down to the nearest million yen)

1.

Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2024 (April 1,2023–September 30, 2023)(Percentages represent year-over-year changes)(1) Consolidated Results of Operations (six months)
Net sales

Million yen
2Q FY 2024
13,9992Q FY 2023
11,546
Note: Comprehensive income (million yen):

Operating profit

Ordinary profit%
Million yen%
Million yen%
21.2
1,153(35.0)
1,646(32.2)(10.1)
1,774(38.8)
2,427(18.7)
2Q FY2024: 1,654 (-28.3%) 2Q FY2023: 2,305 (7.8%)

Net income per share

Diluted net income per share

Yen
18.35
27.41

Yen––

2Q FY2024
2Q FY2023

Profit attributable toowners of parent
Million yen%
1,110(33.0)
1,655(20.4)(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Million yen
Million yen%
2Q FY2024
36,80728,96378.6
FY202336,44729,22780.1
Reference: Shareholders’ equity (million yen):
2Q FY2024: 28,929FY2023: 29,187

2.

Dividends
1Q-endYen––Interim

Yen
0.00
0.00

FY2023
FY2024FY2024 (forecasts)
Note: Revisions to the most recently announced dividend forecast:3.

Dividends per share
3Q-endYen––None

Year-end
Yen
33.00
33.00

Net assets per shareYen
477.59482.69Annual

Yen
33.00
33.00

Consolidated Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023–March 31, 2024)(Percentages represent year-over-year changes)

Net sales

Operating profit

Ordinary profit

Million yen%Million yen% Million yen
Full year27,000
6.5
3,500
40.7
3,600
Note: Revisions to the most recently announced financial forecast: None%
22.8

Profit attributable toNet income perowners of parentshare
Million yen%
Yen
2,520
30.9
41.63

*Notes(1) Changes in significant subsidiaries during the consolidated period (six months) under review (changes insubsidiaries accompanying change in the scope of consolidation): None
New:
None (Company name:)
Excluded: None (Company name:)(2) Application of accounting procedures specific to the preparation of quarterly consolidated financial
statements: Yes(3) 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
(4) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding(including treasury shares) at end
2Q FY2024 62,216,400 sharesof period
2) Number of treasury shares at end
2Q FY2024 1,643,146 sharesof period
3) Average number of shares
outstanding during the period (six2Q FY2024 60,489,723 sharesmonths)

FY202362,216,400 shares

FY2023

1,747,846 shares

2Q FY2023 60,404,091 shares

Note: The number of treasury shares at end of the period is stated including shares held by the Custody Bank of Japan, Ltd.
(Trust E Units) as trust assets of the Board Benefit Trust (BBT). The numbers of such treasury shares are 375,300 for
the fiscal year ended March 31, 2023 and 276,600 for the six months ended September 30, 2023.

* The summary of quarterly financial statements is not subject to a quarterly review by a certified public accountant (CPA) or an audit
firm.
* Cautionary statement with respect to forward-looking statements and other special items
The forecasts and other forward-looking statements contained in this document are based on information currently available to theCompany and certain assumptions deemed to be reasonable. Actual results may differ materially from these forecasts due to avariety of factors.
This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Marvelous Inc. (7844) / Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2024
(Based on J-GAAP)

1.

Qualitative Information Concerning Quarterly Results(1) Explanation of Consolidated Business Results
The entertainment industry in the period under review performed well in the domestic home video gamemarket, driven by the steady supply of the PlayStation®5, and the hardware market, which was significantly
expanded thanks to the continued popularity of the Nintendo SwitchTM. In the mobile game market, since its
growth has reached a period of stability and its size has remained almost flat, a severe competitive environment
continued for new titles, in particular. The amusement market continued to perform well, mainly in prize
games, exceeding the previous year’s market size. In the music and video market, the video distribution market
remained at a high level in reaction to stay-at-home demand, though competition intensified, while the market
for packaged products continued to shrink. In the live entertainment market, attendance turnout has been
improving, but performance cancellations have occurred mainly due to COVID-19 and influenza cases.
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. To establish robust IPs, the Group has been driving its strategy in thethree 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, 2023 to September
30, 2023) came to net sales of 13,999 million yen (up 21.2% compared with the same period of the previousyear), operating profit of 1,153 million yen (down 35.0% compared with the same period of the previous year),ordinary profit of 1,646 million yen (down 32.2% compared with the same period of the previous year), andprofit attributable to owners of parent of 1,110 million yen (down 33.0% compared with the same period of
the previous year).
Results by business segment are described below.
(i) Digital Contents BusinessIn the consumer division of this business, we released a completely new action RPG FREDERICA in Japanand Asia on September 28, 2023. In addition, we released the North American, European and Steam®
versions of Rune Factory 3 Special, which were released in Japan in the previous fiscal year, sequentiallyfrom September 5, and a bullet hell action-RPG Touhou: New World in Japan and overseas in July of thesame year.
In the online segment, sales of Dolphin Wave, which was released in the previous fiscal year, remained
strong, and long-term titles such as Logres of Swords and Sorcery: Goddess of Ancient, SHINOVIMASTER -SENRAN KAGURA NEW LINK-, and Browser Sangokushi contributed steadily to earnings
despite declining sales over time.
However, in terms of profit, we were unable to compensate for the increase in development expenses andthe poor performance of a completely new Juvenile RPG LOOP8 released in the first quarter, resulting in
an increase in sales and a decrease in profit.
As a result, segment net sales totaled 8,015 million yen (up 32.7% compared with the same period of theprevious year), with segment profit of 156 million yen (down 73.8% compared with the same period of theprevious year).
(ii) Amusement BusinessIn this business, we started operation of the two new tags of Pokémon MEZASTAR, our mainstay kids’
amusement machine, one from July 6, 2023 and another one from September 14, 2023. Active marketingand promotional measures, such as exhibiting at events and distributing tags that can be used in Pokémon
MEZASTAR contributed to the strong performance of this segment. Pokémon Ga-Olé, which is currentlyoperating overseas, continued to perform well and contributed significantly to the results. In addition, welaunched a new amusement machine huo ying ren zhe do pai shi jie, in which the popular works NARUTO
are used, in mainland China on September 26, 2023.
As a result, segment net sales totaled 4,271 million yen (up 4.9% compared with the same period of theprevious year), with segment profit of 1,593 million yen (down 1.0% compared with the same period ofthe previous year).

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(Based on J-GAAP)(iii) Audio and Visual BusinessIn this business, Precure All Stars F the Movie, the latest theater movie in Pretty Cure series was releasedon September 15, 2023, remaining the highest-grossing movie in the series’ history. In addition, we havepackaged and commercialized TV animations such as The Café Terrace and its Goddesses.
Moreover, in addition to new performances of series such as MUSICAL THE PRINCE OF TENNIS,“World Trigger the Stage”, and MUSICAL『MORIARTY THE PATRIOT』, we held the seventh
anniversary event of TOUKEN RANBU THE STAGE, which received a favorable reception.
Although sales from stage performances and related packages increased, net sales increased, and profit
declined year on year mainly due to decreases in subsidies related to stage performances and in revenues
from secondary use of animation programs.
As a result, segment net sales totaled 1,712 million yen (up 19.1% compared with the same period of theprevious year), with segment profit of 242 million yen (down 33.6% compared with the same period of theprevious year).
(2) Explanation of Consolidated Financial Position(i) Financial position analysis
On the consolidated balance sheets at the end of the first half, the Group had assets of 36,807 million yen(up 360 million yen from the end of the previous fiscal year), liabilities of 7,843 million yen (up 624 million
yen from the end of the previous fiscal year), and net assets of 28,963 million yen (down 264 million yen
from the end of the previous fiscal year).
Current assets
Consolidated current assets at the end of the first half totaled 28,380 million yen, down 79 million yen
from the end of the previous fiscal year, mainly due to a decrease in cash and deposits.
Non-current assets
Consolidated non-current assets at the end of the first half totaled 8,426 million yen, up 439 million yen
from the end of the previous fiscal year, owing mainly to an increase in intangible assets.
Current liabilities
Consolidated current liabilities at the end of the first half totaled 7,609 million yen, up 728 million yen
from the end of the previous fiscal year owing mainly to increases in accounts payable - trade.
Non-current liabilities
Consolidated non-current liabilities at the end of the first half totaled 234 million yen, down 104 million
yen from the end of the previous fiscal year, owing mainly to a decrease in provision for share-based
remuneration for directors.
Net assets
Consolidated net assets at the end of the first half totaled 28,963 million yen, down 264 million yen fromthe end of the previous fiscal year, due to a decrease in retained earnings resulting from dividends for theprevious fiscal year, despite recording 1,110 million yen in profit attributable to owners of parent.
(ii) Cash flow position
The balance of the consolidated net cash and cash equivalents (“cash”) at the end of the first half totaled
12,047 million yen, down 506 million yen from the end of the previous fiscal year.
Cash flows and relevant factors in the first half are as follows:
Cash flows from operating activities
Cash provided by operating activities totaled 389 million yen (compared to 171 million yen provided in
the same period of the previous fiscal year), mainly owing to profit before income taxes of 1,646 million
yen and an increase of 804 million yen in inventories.
Cash flows from investing activities
Cash provided by investing activities totaled 481 million yen (compared to 3,254 million yen used in thesame period of the previous year), mainly owing to proceeds from withdrawal of time deposits of 1,410-2-Marvelous Inc. (7844) / Consolidated Financial Results for the First Half of the Fiscal Year Ending March 31, 2024
(Based on J-GAAP)

million yen, purchase of property, plant and equipment of 178 million yen, and purchase of intangible
assets of 634 million yen.
Cash flows from financing activities
Cash used in financing activities totaled 2,007 million yen (compared to 2,007 million yen used in the same
period of the previous fiscal year), owing to the dividends paid of 2,007 million yen.
(3) Explanation of Business Outlook Including Consolidated Business Forecast
As for the consolidated business forecast, we have not changed the business forecast announced on May 11,2023.

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