Marvelous Inc.
Stock Code: 7844

(First Section of Tokyo Stock Exchange)

Results Briefing Materials

Fiscal Year Ending March 31, 2021 First Quarter
July 31, 2020

Contents

Fiscal Year Ending March 2021, First Quarter Results SummaryTopics
Segment Results and Future Initiatives

Copyright (c) 2020 Marvelous Inc. All rights reserved.

2

Fiscal Year Ending March 2021,
First Quarter Results Summary

Earnings Highlights (Statement of Profit and Loss)
Resulted in an increase in sales and profit thanks to the online and consumer game business ingood shape owing to demand from nest dwellers, though earnings deteriorated owing to theimpact of the novel coronavirus in the amusement and the audio & visual businesses
Unit: million yen

1Q FY ended March 2020

1Q FY ending March2021

ActualActualProfit ratio

YOY change

Profit ratio(Amount)(%)

Net sales

4,518

-

4,668-

150

103.3%

Cost of sales

1,999-

1,916--82

95.9%

SGA expenses

1,856-

1,862-

5

100.3%

219-

211-

-7

96.6%

Operating profit

662

14.7%

890

19.1%

227

134.4%

Non-operating
profit/loss

-43-

1-45-

Ordinary profit

618

13.7%

891

19.1%

272144.1%

Extra ordinary
profit/loss-22--12-

10-

Income taxes

252-285-33

113.2%

Profit attributable to ownersof parent

343

7.6%

593

12.7%

249

172.8%

Thereof advertisingexpenses

Copyright (c) 2020 Marvelous Inc. All rights reserved.

4

Segment Results
Unit: million yen

1Q FY ended
March 2020

1Q FY ending
March 2021

ActualActual

YOY change(Amount)(%)

Online GameBusiness

1,658

2,068

409

124.7%

Consumer GameBusiness

1,761

1,623

-138

92.2%

Audio & VisualBusiness

1,098

977

-121

89.0%

Total

4,518

4,668150103.3%

Online GameBusiness

328

582

254

177.4%

Consumer GameBusiness39244249

112.7%

Audio & VisualBusiness

344280

-63

81.5%

1,064

1,305

240

122.6%

Company-level costs, etc.

-402-414-12103.0%

Operating profit total

662

890

227

134.4%Net sales

Segment
profitTotal

Copyright (c) 2020 Marvelous Inc. All rights reserved.

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Development of Net Sales and Operating Profit bySegment (Quarterly)■Audio & Visual Business■Consumer Game Business■Online Game Business
Unit: million yen

7,901

6,192

4,822

1,798

6,375
1,318

7,018
6,296
1,326

6,879

6,5832,341(25.6%)(21.1%)

2,261

1,489(32.9%)(22.6%)

2,159(36.7%)

961

1,814

6,818

(23.5%)

2,014(15.2%)(29.5%)

4,518

3,051
(38.6%)

6,318

1,799

(29.0%)(24.1%)(27.8%)(26.8%)(20.6%)

1,164

1,338

2,115

7,709

2,668

3,048

(42.4%)(43.4%)

2,196

2,309

1,098
(24.3%)(35.1%)(31.9%)(45.0%)(55.1%)(34.8%)

977

3,472
3,479

(20.9%)

2,682(39.3%)

1,761

4,668

1,623(34.8%)(39.0%)

2,330

2,243

(48.3%)(36.2%)

1Q

2Q

2,7242,736(42.7%)(34.6%)

3Q

4Q

2,302

2,175(36.6%)(31.0%)

1Q

2Q

FY ended March 2018

2,430(35.3%)

3Q

FY ended March 2019

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

Copyright (c) 2020 Marvelous Inc. All rights reserved.

2,790(42.4%)

4Q

1,658

1,894(36.7%)(30.0%)

1Q

2Q

2,422(31.4%)

3Q

FY ended March 2020

2,126

2,068(31.2%)(44.3%)

4Q

1Q
FY endingMarch 2021

Topics

Capital and Business Tie-up with Tencent GroupEntered into a capital and business tie-up agreement with Image Frame Investment (HK)
Limited, a wholly-owned subsidiary of Chinese company Tencent, on May 25, 2020

×Image Frame Investment (HK)

Purpose of and reason for the capital and business tie-up
 To make rich contents from and to globalize our existing intellectualproperty (IP) To make a large investment to create new IP
 To make investments to develop new businesses
 To acquire and make use of the most advanced techniques

We will decide the details of the business tie-up
after negotiation between both companies andannounce them
Copyright (c) 2020 Marvelous Inc. All rights reserved.

8Segment Results and Future Initiatives

Online Game Business:
1Q FY Ending March 2021 Progress Status[Results Up Until 1Q FY Ending March 2021]

Resulted in an increase in sales and profit year on year as both existing andnew titles remained robust thanks mainly to demand from nest dwellers due tothe novel coronavirus and collaboration measures[Title Performance]
"SHINOVI MASTER -SENRAN KAGURA NEW LINK-" maintainedfavorable performance"Logres of Swords and Sorcery: Goddess of Ancient” recorded sales overthose in the previous 1Q thanks to the effect of collaboration in JuneDistribution of a new application "Ikki-Tousen Extra Burst" started from theend of May and got off to a flying startDistribution and operation of "GIRL CAFE GUN” were transferred toNishiyamai Co., Ltd. as of July 22

Unit: million yen■■Net sales ■■Segment profit

2,068
1,658582

328

1Q FY ended
March 2020

1Q FY ending
March2021[Title Rollouts]
SHINOVI MASTER-SENRAN KAGURA NEW LINK-Logres of Swords and Sorcery:
Goddess of Ancient

Ikki-Tousen Extra Burst

Launched in
Launchedin December
November 2017

Launched in December 2013

Launched on May 25, 2020

(native app)2013

(native app)

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

©Marvelous Inc. Aiming Inc.

(native app)©2019 YUJI SHIOZAKI・SHONENGAHOSHA/IKKITOUSEN WW PARTNERS©2020 Marvelous Inc.

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Online Game Business:
Initiatives Starting in 2Q FY Ending March 2021
 Aim at maintaining sales of existing titles through efforts to continue stable operation
 Focus on making a new title “Ikki-Tousen Extra Burst” one of our key items
 Start to distribute “Fate/EXTELLA” and “Fate/EXTELLA LINK” as game apps for iOS and Android in July
 “The Thousand Musketeers: Rhodoknight,” a completely new game work of the “The Thousand Noble Musketeers”
Project, in production (launch date is not decided)
Logres of Swords and Sorcery:
Goddess of Ancient

SHINOVI MASTER-SENRAN KAGURA NEW LINK-

Launched on Dec. 17, 2013

Launched on Nov. 29, 2017

(native app)(native app)

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

©Marvelous Inc. Aiming Inc.

(native app)Fate/EXTELLA
Fate/EXTELLA LINKThe Thousand Musketeers:
Rhodoknight(game app)(native app)

Launched on May 25, 2020

Launched on Jul. 22, 2020
(buying-up type)

Launch date undecided

Ikki-Tousen Extra Burst©2019 YUJI SHIOZAKI・SHONENGAHOSHA/IKKITOUSEN WW PARTNERS©2020 Marvelous Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

©TYPE-MOON ©2020 Marvelous Inc.

©Marvelous Inc.

11

Consumer Game Business:
1Q FY Ending March 2021 Progress Status
Unit: million yen[Results Up Until 1Q FY Ending March 2021]
Resulted in an increase in profits thanks to an increase in repeat sales owing todemand for game software from nest dwellers, despite of a decrease in sales in
the amusement business due to the impact of the novel coronavirus■■Net sales ■■Segment profit

1,761

1,623

[Title Performance]
The repeat sale of old titles, including “Rune Factory 4 Special,” and theStream summer sale at U.S. subsidiary remained robustIncome from “Pokémon Ga-Olé" fell owing to operation suspension resulting
from refraining from going outside and store closures due to the novelcoronavirus[Title Rollouts]

392

1Q FY endedMarch 2020Rune Factory 4 Special(Nintendo Switch)

North American version: Released on February 25, 2020
European version: Released on February 28, 2020
©2020 Marvelous Inc. Licensed to and published by XSEED Games / Marvelous USA, Inc.

*Image is of North America version.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

442

1Q FY ending
March 2021

Pokémon Ga-Olé(Amusement)

Operations started in July 2016©2020 Pokémon. ©1995-2020 Nintendo/Creatures lnc./GAME FREAK inc.
Developed by T-ARTS and MARV
TM, (R), and character names are trademarks of Nintendo.

12Consumer Game Business:
Initiatives Starting in 2Q FY Ending March 2021


"STORY OF SEASONS: Friends of Mineral Town" North America/European version and Windows PC (Steam) version
released by our overseas subsidiary in July

A Japanese-style action RPG "Sakuna: Of Rice and Ruin" scheduled to be released in November, and "Rune Factory 5,"
the latest title of the series, scheduled to be released within the yearA new cabinet "Pokémon MEZASTAR" scheduled to run after this fall, and "Pokémon Ga-Olé" scheduled to finish running
thereafter

STORY OF SEASONS:Friends of Mineral Town

(Nintendo Switch/Windows PC)

European version: Released on Jul. 10, 2020
North American and PC versions:Released on Jul. 14 (Jul. 15 Japan time), 2020
Ⓒ2020 Marvelous Inc. Licensed to and published by XSEED Games / Marvelous USA, Inc.
Nintendo Switch is a trademark of Nintendo.
The ESRB rating icons are registered trademarks of the Entertainment Software Association.
*Image is of North America version.

Rune Factory 5(Nintendo Switch)

Sakuna: Of Riceand Ruin
(PlayStation®4/
Nintendo Switch/Windows PC)

Japanese and Asian versions: To be released on Nov. 12, 2020
North American and PC versions: To be released on Nov. 10, 2020
European version: To be released on Nov. 20, 2020
©2020 Edelweiss. Licensed to and published by XSEED Games /Marvelous USA, Inc. and Marvelous, Inc.

Pokémon MEZASTAR(Amusement)

To be released in 2020©2019 Marvelous Inc.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

Scheduled to run after fall 2020
©2020 Pokémon. ©1995-2020 Nintendo/Creatures Inc. /GAME FREAK inc.
Developed by T-ARTS and MARV ポケモン・Pokémonは任天堂・クリーチャーズ・ゲームフリー
クの登録商標です。

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Audio & Visual Business:
1Q FY Ending March 2021 Progress Status[Results Up Until 1Q FY Ending March 2021]

Resulted in a decrease in sales and profit due to the postponement of thebroadcast of some TV anime series and the cancellation and postponement of
all stage performances in 1Q owing to the impact of the novel coronavirus

Unit: million yen■■Net sales ■■Segment profit

1,098

977

However, some earnings were secured thanks mainly to the sale of the goods
packages of some titles performed in the previous term and as earnings fromsome titles performed in the previous term were recorded in this term

[Title Performance]
Broadcast of TV anime “Mewkledreamy” and “Woodpecker Detective’sOffice” started in April, and broadcast of “My Teen Romantic Comedy
SNAFU Climax” was postponed from April to July due to the impact ofthe novel coronavirusSeveral stage performances were cancelled or postponed after April[Title Rollouts]
Mewkledreamy

344

1Q FY ended
March 2020

280

1Q FY ending
March 2021

Cancelled performances
Woodpecker Detective’s Office Musical HAKUOKI SHINKAI Side Soma Kazue" (April) MUSICAL THE PRINCE OF TENNIS CONCERT Dream Live2020 (May) MUSICAL ACE OF DIAMOND (June through July) Touken Ranbu the Stage (June through August) Stage [Yowamushi Pedal] (July)
Postponed performances

TV broadcast started in April 2020©2017, 2020 SANRIO CO., LTD. Mewkledreamy Production Committee, TV TOKYOTV broadcast started in April 2020
©2020 Kei Ii, Tokyo Sogensha Co., Ltd./“Woodpecker Detective’s Office” Project

Copyright (c) 2020 Marvelous Inc. All rights reserved.

 MUSICAL AOHARU TETSUDO 4 (July through August)* Months in parentheses show the originallyestimated periods of performance
舞台『弱虫ペダル』新インターハイ篇
ザ・キングダム～箱根学園王者復格～

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Audio & Visual Business:
Initiatives Starting in 2Q FY Ending March 2021

Broadcast of "My Teen Romantic Comedy SNAFU Climax" started from July, and broadcast of "Akudama Drive" scheduledto start from October

We resumed performances from “Touken Ranbu the Stage” of July

A performance of a large event "Touken Ranbu the Daienren," the fifth anniversary event of "Touken Ranbu -ONLINE-,"
scheduled to be performed in August is to be postponed this year. We will decide whether we can perform the event, inaccordance with the policies of the national and local governments and the guidelines of the Association of Public Theatersand Halls in JapanAkudama Drive
My Teen Romantic
Comedy SNAFUClimax

TV broadcast started in July 2020
©WATARU WATARI, SHOGAKUKAN/OREGAIRU3 PRODUCTION COMMITTEE

Touken Ranbu the Stage

Performances scheduled for July - August 2020
©Touken Ranbu the Stage Production Committee©2015-2020 DMM GAMES/Nitroplus

Copyright (c) 2020 Marvelous Inc. All rights reserved.

TV broadcast scheduled for October 2020
© Pierrot,TooKyoGames/Akudama Drive Production Committee

MUSICAL『MORIARTY THE
PATRIOT』OP.2-A SCANDAL IN
BRITISH EMPIRE-

Performances scheduled for July - August 2020
©Ryosuke Takeuchi,Hikaru Miyoshi/SHUEISHA© MUSICAL『MORIARTY THE PATRIOT』PROJECT

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Impact on the Company’s Future Business of NovelCoronavirus
Online Game Business• Will continue to make efforts to maintain favorable performance though demand fromnest dwellers is expected to settle down

Consumer Game Business• Will make efforts to maintain favorable performance in the consumer game business• In the amusement business, although the situation tends to recover after the lifting ofthe declaration of a state of emergency, there is some possibility that the impact will
spread again depending on a future situation

Audio & Visual Business• In the audio & visual business, full-year results will be influenced by postponement ofperformances of movie versions of anime and of the sale of related goods as well ascancellation of live concerts• In the live entertainment business, we are to give performances in accordance withthe policies of the national and local governments and the guidelines of theAssociation of Public Theaters and Halls in Japan. Attendance is limited, and there isconcern about the re-spread of infection. So a tense situation is expected to continue
Copyright (c) 2020 Marvelous Inc. All rights reserved.

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Results and Dividends Forecasts for the Fiscal YearEnding March 2021
Results forecasts
Full-year results forecasts for the fiscal year ending March 2021 are notdisclosed at the present time because of the difficulty in reasonably
estimating the impact of the novel coronavirus.
It will be announced as soon as it is possible to disclose consolidated
results forecasts.
Dividends forecasts
 FY ended March 2020: ¥33 annual dividend

Dividend policy

 FY ending March 2021: Undecided
FY2020

FY2021(Forecasts)

Dividend

33 yenUndecided

Dividendpayout ratio

95.0%-Copyright (c) 2020 Marvelous Inc. All rights reserved.

Securing necessary internal reserves
for expanding future businesses andstrengthening the financial position,
the Company distributes continuousand stable dividends targeting 30% ormore of payout ratio as a basic policy.
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Thank you very much for your attention.
Inquiries
Corporate Communication Division, Corporate Planning Department
E-mail:ir@marv.jp
URL:https://corp.marv.jp

This document contains forward-looking statements which are based on information currently available to theCompany and which may change as a result of numerous factors including the macroeconomic environment andindustry 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 fromthose presented.

Copyright (c) 2020 Marvelous Inc. All rights reserved.

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