Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (Based on J-GAAP)May 10, 2024
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 Annual General Meeting of Shareholders: June 21, 2024
Scheduled commencement date of dividend payout: June 7, 2024
Scheduled date of filing Annual Securities Report: June 21, 2024
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, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-over-year changes)(1) Consolidated Results of Operations (full-year)
Net sales

Profit attributable toowners of parent
Million yen%
Million yen%
Million yen%
2,415(2.9)
3,002
2.4(517)‒2,488(45.9)
2,931(42.0)
1,925(49.6)
FY2024: 87 (-96.0%)
FY2023: 2,192 (-47.5%)
Operating profit

Million yen%FY2024
29,49316.4
FY202325,341(1.5)
Note: Comprehensive income (million yen):
Net income per share

Ordinary profit

Diluted net income pershare

Ratio of ordinary
Ratio of operating
profit to total
profit to net sales
assets%%%(1.8)
8.5
8.2
6.6
8.0
9.8
FY2023: –Return on equity

YenYenFY2024(8.55)‒FY202331.85‒
Reference: Equity in earnings/losses of affiliates (million yen): FY2024: –(2) Consolidated Financial Position

Total assets
Million yenFY2024
34,538FY202336,447
Reference: Shareholders’ equity (million yen):Net assets
Million yen
27,39629,227
FY2024: 27,354

Equity ratio%
79.2
80.1
FY2023: 29,187

Net assets per shareYen
451.60482.69(3) Consolidated Cash Flows Position

FY2024FY2023

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
2,892(1,288)(2,167)
12,677976(3,457)(2,007)
12,553

2. DividendsDividends per share
1Q-endInterim

3Q-endYear-end

AnnualYen
Yen
YenYen‒0.00‒33.00‒0.00‒33.00
FY2025 (forecasts)‒‒‒‒
Note: The dividend forecasts for FY2025 are not decided at this stage.

Yen
33.00
33.00
‒FY2023
FY2024

Total
Dividend
dividends
payout ratio(annual)(consolidated)
Million yen
%
2,007
103.6
2,007
‒
‒

Dividend onequity(consolidated)
%
6.9
7.1

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)(Percentages represent year-over-year changes)

Profit attributable to Net income perowners of parent
shareMillion yen% Million yen% Million yen% Million yen%Yen(1.7)‒(37.9) ‒(50.0) ‒‒16.51‒
Full year
29,000‒32,000
1,500‒2,000
1,500‒2,000
1,000‒1,400
8.5(17.2)(33.4)‒
23.11
Note: Since the Company manages its business performance on an annual basis, the forecast for the second quarter (cumulative) has
been omitted.
The consolidated forecasts for the fiscal year ending March 31, 2025 has been disclosed in a range format due to uncertainty
regarding the release dates of new titles of consumer games.
Net sales

Operating profit

Ordinary profit

*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: None
2) Changes in accounting principles other than those mentioned above: None
3) Changes in accounting estimates: Yes
4) Restatements: None
(3) Number of shares issued and outstanding (shares of common stock)1) Number of shares outstanding(including treasury shares) at end ofFY2024
62,216,400 sharesperiod2) Number of treasury shares at end ofFY2024
1,643,151 sharesperiod3) Average number of shares outstanding
FY202460,531,487 shares
during the period

FY202362,216,400 shares

FY2023

1,747,846 shares

FY202360,436,234 shares

Note: The number of treasury shares at end of the period is stated, including 270,600 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 Year Ended March 2024 (April 1, 2023 – March 31, 2024)(1) Non-consolidated Results of Operations (full-year)(Percentages represent year-over-year changes)
Net sales
Operating profit
Ordinary profit
ProfitMillion yen% Million yen% Million yen% Million yen%FY2024
23,5837.8
1,760 (18.1)
3,802
41.6
1,120 (38.9)
FY2023
21,8708.5
2,149 (11.2)
2,685 (13.0)
1,833 (26.8)
Diluted net income pershareYen
Yen
18.51
‒
30.33
‒

Net income per share
FY2024FY2023(2) Non-consolidated Financial Position
Total assets
Million yen
FY2024
29,626FY202330,681
Reference: Shareholders’ equity (million yen):

Net assets
Million yen
23,30624,099FY2024: 23,306

Equity ratio

%
78.7
78.5

FY2023: 24,099

Net assets per shareYen
384.77398.54* The summary of 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.
For details, please refer to P. 3 “1. Summary of Consolidated Business Results (4) Outlook.”
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 Fiscal Year Ended March 31, 2024
(Based on J-GAAP)

1.

Summary of Consolidated Business Results(1) Summary of business results for the period
The entertainment industry in the period under review, the domestic home-use games market grew overall,driven by strong sales of software owing to an increase in download sales despite a decline in package sales
and favorable trends in the hardware market due to the increase in sales owing to the elimination of thePlayStation® 5 shortage and the continued popularity of Nintendo SwitchTM. In the mobile game market, some
new titles became hits, but as the market matured, the competitive environment surrounding not only new
titles but also existing titles remained harsh. In the domestic amusement market, the overall market was driven
by the strong performance of prize games, which resulted in growth exceeding pre-COVID-19 levels. In themusic and video market, the package market continued to shrink, but the video distribution market, whichbecame established in daily life after the COVID-19 pandemic, remained at a high level despite intensifiedcompetition. In the live entertainment market, audience turnout has been improving mainly due to thereclassification of COVID-19 into Class 5, but it is taking time to recover to the previous level due to changes
in consumer behavior.
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 March31, 2024) came to net sales of 29,493 million yen (up 16.4% from the previous fiscal year), operating profitof 2,415 million yen (down 2.9% from the previous fiscal year), ordinary profit of 3,002 million yen (up 2.4%
from the previous fiscal year), and loss attributable to owners of parent of 517 million yen (profit attributableto owners of parent of 1,925 million yen in 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 new original titles worldwide in 2023: a Juvenile
RPG LOOP8 in June, an action RPG FREDERICA in September, and the fashion and communication
game Fashion Dreamer in November. However, each of these performances was significantly below ouroriginal sales plan, resulting in a project loss. On the other hand, the North American, European andSteam® versions of BOKUJO MONOGATARI Welcome! WONDERFUL LIFE launched in Japan in theprevious fiscal year, were released in June 2023 and sold well.
In the online division, Dolphin Wave, which was released in October 2022, remained strong andcontributed throughout the year, while long-term titles, including Browser Sangokushi, made a solid
contribution to revenues. A casual game developed by our subsidiary G-MODE Corporation also
performed well, contributing to stable revenues.
Although sales increased year on year owing to the release of several new consumer games in Japan andoverseas, profit decreased mainly due to project losses for three new original titles. In light of these results
and the current business environment, the accounting estimates for game development expenses have beenrevised, and game development assets currently under development, excluding some series titles, havebeen recognized and recorded as extraordinary losses.
As a result, segment net sales totaled of 15,435 million yen (up 9.2% from the previous fiscal year), withsegment profit of 474 million yen (down 39.1% from the previous fiscal year).
(ii) Amusement BusinessIn this business, we started operation of the tags of Pokémon MEZASTAR, our mainstay kids’ amusement
machine, one from April 2023 and others sequentially from July, September, November 2023, and February
2024. Thanks to aggressive marketing and promotion measures such as exhibiting at events and distributing“tags” in collaboration with other companies, the performance was extremely strong, achieving the highest
sales ever for a Pokémon Kids Amusement Machine, which has been available since 2007’s Pokémon
BATTRIO. Pokémon Ga-Olé, which is currently operating overseas, performed well and contributed
significantly to the results. In addition, we launched a new amusement machine, in which the popular-1-Marvelous Inc. (7844) / Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Based on J-GAAP)

works NARUTO are used, in mainland China in September 2023, and the number of the operation
machines has been expanding steadily.
As a result, segment net sales totaled 9,021 million yen (up 15.6% from the previous fiscal year), withsegment profit of 3,107 million yen (up 11.5% from the previous fiscal year).
(iii) Audio and Visual BusinessIn this business, in addition to starting broadcasting the TV animation The Café Terrace and its Goddesses
in April 2023, the original TV anime series Power of Hope ~PrecureFull Bloom~ in October 2023, which
was one of the 20 year anniversary measures for the Precure series, and TV animation The Unwanted
Undead Adventurer in January 2024, the Company released Precure All Stars F the Movie in September
2023, which became the highest-grossing film in the history of the series. In addition, these TV animations
and the theatrical film were packaged and commercialized.
In addition, new performances of series such as MUSICAL THE PRINCE OF TENNIS, “World Triggerthe Stage”, and MUSICAL『MORIARTY THE PATRIOT』 were performed and received good reviews,
and new plays in this fiscal year, such as Stage[The Vampire dies in no time.], DANCING☆STARPRECURE THE STAGE, and HIGH CARD the STAGE were performed.
The sales environment for tickets and merchandise for stage performances improved owing to the recovery
from the COVID-19 pandemic, resulting in a significant recovery in revenues. On the other hand, overall
in this business, profit margins declined mainly due to temporary cost increases, upfront investment, andreduced subsidies for stage performances, resulting in almost flat profits.
As a result, segment net sales totaled of 5,036 million yen (up 48.1% from the previous fiscal year), withsegment profit of 531 million yen (down 1.0% 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 34,538 million yen, down 1,908 million yen
from the end of the previous fiscal year, mainly due to a decrease in work in process.
Consolidated liabilities at the end of the period under review totaled 7,141 million yen, down 77 million yen
from the end of the previous fiscal year, mainly due to a decrease in Income taxes payable, despite increases
in accounts payable - trade and others.
Consolidated net assets at the end of the period under review totaled 27,396 million yen, down 1,830 million
yen from the end of the previous fiscal year, mainly owing to recording of loss attributable to owners of parentof 517 million yen and a decrease in retained earnings due to dividend payments.
(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 12,677 million yen, up 124 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 2,892 million yen (up 1,915 million yen from the previous fiscalyear), mainly due to depreciation of 1,193 million yen and an increase in trade payables of 898 million yen,less loss before income taxes of 656 million yen and income taxes paid of 1,786 million yen.
[Cash flows from investing activities]
Cash used in investing activities totaled 1,288 million yen (down 2,169 million yen from the previous fiscalyear), mainly due to purchase of property, plant and equipment of 1,795 million yen, and purchase of intangible
assets of 1,225 million yen, despite proceeds from withdrawal of time deposits of 1,445 million yen.
[Cash flows from financing activities]
Cash used in financing activities totaled 2,167 million yen (up 160 million yen compared with the previous
fiscal year), mainly due to the dividends paid of 2,007 million yen.

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

Reference: Trends in cash flow indicatorsFY2020
Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market prices (%)
Interest-bearing debt to cash
flow ratio (annual)Interest coverage ratio (times)

FY2021

FY2022

FY2023

FY2024

76.6

79.9

79.2

80.1

79.2

105.3

155.3

119.3

109.5

121.9

9.0

3.7

5.7

16.4

0.0

2,233.0

3,557.5

2,839.2352.7

2,729.5

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
In the Digital Contents Business, several remakes, indie titles, and acquisition titles will be released, inaddition to two consumer games as original titles and one online game. Although net sales are expected to beat or above the level of the previous fiscal year, profit margins are expected to decline due to upfront
investments in new businesses in the amusement business and the audio and visual business In addition,operating results for the period under review are expected to be weighted in the second half of the year as therelease of large consumer titles is scheduled for the second half of the year.

2.

Basic Approach to the Selection of Accounting Standards

The Company prepares financial statements and other materials in accordance with generally accepted accounting
principles in Japan (J-GAAP). We are considering the voluntary application of International Financial ReportingStandards (IFRS), however, we will continue to apply the J-GAAP by comprehensively taking consideration ofsecuring comparisons with the financial data of other companies and the possibility of fund procurement in overseas
markets. We will continue to consider the voluntary application of IFRS.

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