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

Fiscal Year Ended March 31, 2017

Results Briefing
Materials
May 11, 2017
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 themacroeconomic environment and industry trends relevant to the Company. Therefore, theseforward-looking statements are made subject to certain risks and uncertainties which could cause
results including actual business performance to differ materially from those presented.

1

Contents

Fiscal Year Ended March 2017, Results Summary
Segment Results
Fiscal Year Ending March 2018, Full-Year Business Forecast

Copyright (c) 2017 Marvelous Inc. All rights reserved.

2

Fiscal Year Ended March 2017,
Results Summary

Copyright (c) 2017 Marvelous Inc. All rights reserved.

3

Earnings Highlights (Statement of Income) Sales missed initial target but net earnings met projections
 Earnings at all levels posted new historical highs in the fifth consecutive year of
earnings growth since the management integration(Unit: million yen)

FY ended March 2016

FY ended March 2017

ActualActualProfit ratio

YOY change

Profit ratio(Amount)(%)

Net sales

31,820-29,387--2,432

92.4%

Cost of sales

12,608-

13,114-505

104.0%

SGA expenses

13,793-

10,519--3,274

76.3%

Thereof advertisingexpenses

3,187

-

1,951

-

-1,235

61.2%

Operating income

5,418

17.0%

5,754

19.6%

336

106.2%

Non-operating
income/losses

-190

-

55

-

245

-

Ordinary income

5,228

16.4%

5,810

19.8%

582

111.1%

Extraordinary
income/losses

-55

-

-17

-

37

-

Income taxes

1,569

-

1,626

-

57

103.7%

Profit attributable toowners of parent

3,602

11.3%

4,165

14.2%

562

115.6%

Copyright (c) 2017 Marvelous Inc. All rights reserved.

4

Segment Results(Unit: million yen)
FY ended
March 2016

FY ended
March 2017

ActualActual

YOY change(Amount)

POINT● Online Game Business(%)• Core title sales decreased

Online GameBusiness

19,755

Consumer●Game Business

7,544

9,067

1,523

120.2%

Audio & VisualBusiness

4,527

5,607

1,079

123.8%

Total

31,82029,387-2,432

92.4%●

Online GameBusiness

4,182

3,271

-910

78.2%

●

ConsumerGame Business

1,006

2,042

1,035

202.9%● Audio & Visual Business●

Audio & VisualBusiness

1,308

1,603

294

122.5%

Total

6,497

6,917

419

106.5%• Favorable performanceswith higher sales andearnings of long-seller
series and new contents

Adjustments & eliminations-1,079-1,163-83

107.8%

Operating Income Total

5,418

5,754

336

106.2%●Net Sales●

Segment
Income14,750-5,005

74.7%• No new titles present

Copyright (c) 2017 Marvelous Inc. All rights reserved.

● Consumer Game Business• Sales and earnings up on
new title hit products at thegame business5

Development of Net Sales
and Operating Income (Quarterly) 4th quarter marks high performance levels continuing from 3rd quarter(Unit: million yen)
10,000Net sales
売上高

3,500

Operating income
営業利益

8,233

8,045

7,781

8,000

7,591

Net Sales

7,751

2,800

1,932

2,100

2,503

6,820

6,795
6,203

6,000
4,758
1,475

1,486
1,376

1,464

1,446

4,000

1,400

Operating Income

6,629

8,637

8,402

1,130
793
2,000

638

655

679
700

0

0
1Q

2Q

3Q

4Q

FY
ended March 2015
2015年3月期

Copyright (c) 2017 Marvelous Inc. All rights reserved.

1Q

2Q

3Q

FY2016年3月期
ended March 2016

4Q

1Q

2Q

3Q

4Q

FY 2017年3月期
ended March 2017

6

Sales Structure by Segment (Quarterly) Consumer Game Business and Audio & Visual Business remain strong also in the 4th quarter
10,000■ Audio & Visual Business

9,000■ Online Game Business

Unit: million yen (percent of sales)■ Consumer Game Business
8,637
8,233

8,402
8,045
7,781

8,000
1,532
6,820

7,000

6,629

6,000

5,000

4,000

3,000

1,322

(15.4%)(19.4%)

1,061

4,758
825

2,152

(17.3%)(32.5%)(20.6%)

2,086(24.8%)(22.9%)

1,459

7,751

(16.9%)

862(11.1%)

1,655
1,884

(14.2%)

7,591
6,795
1,564
(20.6%)

945(28.0%)(15.2%)(21.4%)(15.6%)(24.5%)

1,303

2,177
1,625

1,897

6,203

(19.2%)

2,986(34.5%)

1,542

1,970

2,568

(24.9%)(29.0%)(33.1%)

3,717

3,530

1,278
(26.9%)

4,443

2,000

1,000

1,019

(18.6%)

912(11.3%)

1,189

2,656

3,461

(65.2%)

4,818

5,479
(68.1%)(58.5%)

5,129(61.0%)

4,743(61.0%)

4,403(58.0%)(59.9%)(52.2%)

4,207(48.6%)(51.9%)

3,295(42.5%)(55.8%)

0
1Q

2Q

3Q

4Q

FY2015年3月期
ended March 2015

Copyright (c) 2017 Marvelous Inc. All rights reserved.

1Q

2Q

3Q

2016年3月期
FY ended
March 2016

4Q

1Q

2Q

3Q

4Q

2017年3月期
FY ended
March 20177

Balance Sheet (Summary) Higher current assets and total assets reflect increase in cash and deposits fueled by earnings
growth Increase in current liabilities from higher income taxes payable also mostly due to earnings
growth(Unit: million yen)

End ofMarch 2016

End ofMarch 2017

ChangeCurrent assets (total)

16,204

19,285

3,080

Noncurrent assets (total)

4,165

4,943

778

20,37024,228

3,858

6,421

7,626

1,205

Noncurrent liabilities (total)

27

62

34

Total Liabilities

6,448

7,688

1,239

Net Assets (total)

13,921

16,5392,618

Total Assets
Current liabilities (total)

Copyright (c) 2017 Marvelous Inc. All rights reserved.

8

Segment Results

Copyright (c) 2017 Marvelous Inc. All rights reserved.

9

Online Game Business Review of Titles in FY Ended March 2017
 Logres of Swords and Sorcery shows stable performance supported by continued
improvements and event implementations
 Launch of new titles falls short of plan - Development terminated for some titles

Logres of Swords and Sorcery:
Goddess of Ancient(native app)

©Marvelous Inc. Aiming Inc.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

10

Online Game BusinessResults for FY Ended March 2017
 Sales and earnings declines due to missing contributions from new titles
 Improved profit margins from enhanced marketing efficiency and removal ofunderperforming titles
25,000(Unit: million yen)

7,500

19,75520,0006,000

15,3794,182

15,00014,750

4,500

3,815
3,271
10,000

3,000

5,000

1,500

0

0
FY2015年3月期
ended March 2015

FY 2016年3月期
ended March 2016

Net sales
Copyright (c) 2017 Marvelous Inc. All rights reserved.

FY2017年3月期
ended March 2017

Segment income
11Consumer Game Business Review of Titles in FY Ended March 2017
 Favorable sales performance of all new titles for popular series
 Service start of two new types of amusement machines
BOKUJO MONOGATARI MITTSU NO
SATO NO TAISETSU NA TOMODACHI(Nintendo 3DS)

(PS4/PS Vita)

Dragon Quest:
Monster Battle Scanner(PS4)
Releasedon
March 16,2017

Releasedon
November
10, 2016

ReleasedonJune 23,2016©2016 Marvelous Inc. All Rights Reserved.

SENRAN KAGURA
PEACH BEACH SPLASH

Fate/EXTELLA©TYPE-MOON ©2016 Marvelous Inc.

©2017 Marvelous Inc.

Pokémon Ga-Olé(Amusement)(Amusement)
Operations
launched
on June 23,
2016© 2016,2017 ARMOR PROJECT/BIRD
STUDIO/Marvelous/SQUARE ENIX All Rights Reserved.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

Operations
launched
on July 7,
2016©2017 Pokémon.
©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARV

12

Consumer Game Business Results for FY Ended March 2017
 Strong contributions from new hit productions "STORY OF SEASONS," "Fate,"and "SENRAN KAGURA" Earnings increase two-fold on sales and earnings growth compared with theprevious fiscal year

(Unit: million yen)

2,500

10,000

9,067
2,042

2,000

7,544

8,000

6,376
1,500

6,000

1,006

1,000

4,000

502

500

2,000

0

0
FY ended
March 2015
2015年3月期

FY 2016年3月期
ended March 2016

Net sales
Copyright (c) 2017 Marvelous Inc. All rights reserved.

FY ended
March 20172017年3月期

Segment income
13

Audio & Visual Business Review of titles in FY ended March 2017
 New stage performances hugely successful. Repeat performances and sequel performanceswith favorable BD/DVD sales for all productions
 New anime production of " Touken Ranbu " also proves a big hit
 Sustained favorable earnings from secondary uses centered on video dissemination in Japanand overseas

TV anime
Touken Ranbu the Stage “TOUKEN RANBU(Repeat performance)
HANAMARU”
Performed
from
December
2016 toJanuary 2017

“Ensemble Stars! On Stage ”～Take your marks!～
Performed
in January
2017

Broadcastfrom October
to December
2016©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT©Touken Ranbu the Stage Production Committee©2016 TOUKEN RANBU HANAMARU Project

Copyright (c) 2017 Marvelous Inc. All rights reserved.

14

Audio & Visual Business Results for FY Ended March 2017
 New title productions and long-seller series show solid performances with steadysales and earnings growth(Unit: million yen)

6,000

4,800

2,000

5,607
1,603

4,699

4,527

1,600

1,308
3,600

1,200

1,089

2,400

800

1,200

400

0

0
FY ended
March 2015
2015年3月期

2016年3月期
FY ended
March 2016

Net sales
Copyright (c) 2017 Marvelous Inc. All rights reserved.

2017年3月期
FY ended
March 2017

Segment income
15

Fiscal Year Ending March 2018,
Full-Year Business Forecast

Copyright (c) 2017 Marvelous Inc. All rights reserved.

16

Fiscal Year Ending March 2018,
Full-Year Business Forecast

FY ended March 2017

FY ending March 2018

ActualForecast(Unit: million yen)

35,000

Profit ratio

YOY change

Profit ratio(Amount)

Net Sales

29,387－30,000－613

102.1%

Operating Income

5,754

19.6%

6,000

20.0%

246

104.3%

Ordinary Income

5,810

19.8%

6,000

20.0%

190

103.3%

Profit attributable toowners of parent

4,165

14.2%

4,180

13.9%

15

100.4%Net sales
売上高

Operating income
営業利益10,00031,82029,38730,00026,441

28,00020,33021,00014,000(%)

17,579

8,000

5,418

5,754

6,000
6,000

4,412
4,000

3,006

10,423
2,329

7,000

2,000

1,044

0

0

FY ended
March 2012

FY ended
March 2013

FY ended
March 2014

Copyright (c) 2017 Marvelous Inc. All rights reserved.

FY ended
March 2015

FY ended
March 2016

FY ended
March 2017

FY endingMarch 2018
(Forecast)17

Key efforts in the fiscal year ending March 2018
Comprehensive capabilities of Marvelous accumulated
over two decades since the founding of the Company
Online GameBusiness

ConsumerGame Business

Native app

Home-use games

Social games

Amusement games

PC browser games

New title
development

IP value
maximization

Strategic
cooperation

Audio & VisualBusiness
CD / DVD / Blu-ray
Stage/musical performances
Dissemination andprogram sales

Expansion ofoverseas
initiatives

Multi-media
development

Preparation of wide and varied line-ups

Sustained growth for the next 20 years
Copyright (c) 2017 Marvelous Inc. All rights reserved.

18

Online Game Business:
Initiatives starting in FY ending March 2018
 Development of new titles as future mainstays

Sengoku Night Blood

Tenka Touitsu Project

Launch of
PC version
in April
2017

Advanceregistration
pending

Smartphoneversion indevelopment©2017 Marvelous Inc. / KADOKAWA / IDEA FACTORY©Marvelous Inc. / ©DMM GAMESJoint development
and operation with
DMM GAMES“Senbra” project
jointly planned bythree companies

×ORDINAL STRATA×

Copyright (c) 2017 Marvelous Inc. All rights reserved.

Dissemination
to bedetermined© Fujio Akatsuka, Osomatsu-san Production Committee©D-techno / Marvelous Inc.

Ⓒ Fuji Games Inc. / Marvelous Inc.

××

Shimamatsu (provisional name)

Scheduled
for launch inthe summerof 2017

Large-scale
joint project(dissemination
scheduled for2017)

× Mr. Tosh (X JAPAN)

Joint development
and operation with
D-techno×19Online Game Business: Development pipeline

Seven development projects in progress

Announcement
completed4•Tenka Touitsu Project•

Sengoku Night Blood (Smartphone)development
projects•

ORDINAL STRATA (Smartphone)•

Shimamatsu (provisional name)(PC/Smartphone)(Smartphone)To beannounced

3

• ???

development
projects

• ???

• ???

* The development pipeline includes no titles for further consideration but constitutes no binding
commitment as to the number of releases.
Copyright (c) 2017 Marvelous Inc. All rights reserved.

20

Consumer Game Business:binding commitment as to March 2018
 Launch of Nintendo Switch version for core series

Fate/EXTELLA(Nintendo Switch)

Shinobi Reflation- SENRAN KAGURA (Provisional name)(Nintendo Switch)

Scheduled
for releaseon July 20,
2017

Scheduled
for releasein2017©2017 Marvelous Inc.

ⒸTYPE-MOON Ⓒ2017 Marvelous Inc.
Published outside Japan by XSEED Games/Marvelous USA, Inc. and Marvelous
Europe Ltd.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

21

Consumer Game Business:
Initiatives starting in FY ending March 2018
 Amusement Business to introduce new machine models in the prize market
 Expansions of roll-out of "Pokémon TRETTA" in Southeast Asian countries

TRYPOD™

* Patent application pending.
* LED ring illumination does not operate as a probability indicator.
* Note that design and content are subject to change without prior notice.
©Marvelous Inc.

Copyright (c) 2017 Marvelous Inc. All rights reserved.

Pokémon TRETTA(Overseas initiatives)©2017 Pokémon. ©1995-2017 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARV
Pokémon is a registered trademark of Nintendo, Creatures, and Game Freak.

22

Audio & Visual Business:
Initiatives starting in FY ending March 2018
 A line-up of long-seller core series and promising new amine productions
 Proactive cross-media initiatives also for proprietary IP of the Company
Kira Kira☆Pretty Cure A La Mode

Yu-Gi-Oh! VRAINSSENGOKU NIGHT BLOOD

TV anime
Scheduled forlaunch ofbroadcastingin Fall 2017TV
broadcastinglaunched in
May
2017

TV
broadcastinglaunched in
February2017© 2017 Marvelous Inc./KADOKAWA/IDEA FACTORY©Toei Animation. All Rights Reserved©1996 Kazuki Takahashi©2011 NAS・TV TOKYO

Fate/EXTRA Last Encore

TOUKEN RANBU HANAMARU

2 seasons ofTV anime
Scheduled forlaunch ofbroadcasting inJanuary
2018

TV anime
Scheduled forlaunch ofbroadcasting innext winter©TYPE-MOON/Marvelous, Aniplex, Notes, SHAFT

Copyright (c) 2017 Marvelous Inc. All rights reserved.

©2016 TOUKEN RANBU HANAMARU Project23

Audio & Visual Business:
Initiatives starting in FY ending March 2018
 Sold out new stage production "Joker Game" marking a successful start A succession of sequels of popular stage performances and highly-anticipated new productions
scheduled for release
JOKER GAME THE STAGE

Touken Ranbu the Stage

Scheduled for
performancesfrom June toJuly 2017

Performancesin May 2017

© Koji Yanagi, KADOKAWA / JOKER GAME ANIMATION PROJECT© JOKER GAME THE STAGE PROJECTTokyo Ghoul the Stage
Sequel©Touken Ranbu the Stage Production Committee

MUSICAL THE PRINCE OFTENNIS 3rd Season
SEIGAKU vs RIKKAIScheduled for
performancesfrom July to
October 2017

Scheduled for
performancesfrom June toJuly 2017©Sui Ishida/Shueisha,©Tokyo Ghoul the Stage
Production Committee

Copyright (c) 2017 Marvelous Inc. All rights reserved.

©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI／2015 MUSICAL THE PRINCE OF TENNIS PROJECT

B-PROJECT on STAGE
OVER the WAVE!

©MAGES.／STAGE B-PROJECT

Scheduled for
performancesfrom July toAugust 201724

Dividend Forecast / Dividend Policy
 Fiscal year ended March 2017: ¥30 annual dividend (finalized)
 Fiscal year ending March 2018: ¥30 ordinary dividend and additional dividend of ¥3 commemorating
the 20th founding anniversary of the Company for a total annual dividend of ¥33 (planned)
40■Ordinary dividend ■Commemorative dividend

30

30

30

30

20

20

13
10

30

33
3
30

20

13

Dividend policy
As a fundamental policy,
the Company distributes
sustained and stabledividends aiming at apayout ratio of at least 30%
while observing internalretention necessary for
future business growth andfor strengthening thefinancial structure of theCompany.

0
FY2014年3月期
ended March 2014

FY2015年3月期
ended March 2015

FY2016年3月期
ended March 2016

FY
ended March 2017 FY2018年3月期
ending March 20182017年3月期(forecast)（予想）

Dividend payout
ratio

36.9%

49.1%

Copyright (c) 2017 Marvelous Inc. All rights reserved.

43.7%

37.3%

40.8%
25

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) 2017 Marvelous Inc. All rights reserved.

26