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

Fiscal Year Ending March 31, 2015
First Quarter

Results Briefing
Materials
August 7, 2014

This document contains forward-looking statements which are based on
information currently available to the Company and which may change as aresult 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 materiallyfrom those presented.

Contents

Fiscal Year Ending March 2015, First Quarter Results Summary
Fiscal Year Ending March 2015 Business Forecast
Segment Results

Copyright (c) 2014 Marvelous Inc. All rights reserved.

2

Fiscal Year Ending March 2015,First Quarter Results Summary3

Earnings Highlights(Unit: million yen)

(Operating19.3%
Profit Ratio)
●

13.8%

Main Factors●

Rising sales fromstrong performance ofapp games

Decline in profit margins
from backlash in repeat
sales of consumer gamesoftware

1Q Fiscal Year
ended March 2014
Copyright (c) 2014 Marvelous Inc. All rights reserved.

1Q Fiscal Yearending March 20154

Financial Highlights (P/L)

Growth in business scale continuing
compared with year-earlier period(Unit: million yen)

1Q of FY ended March 2014
ActualProfit ratio

1Q of FY ending March 2015
ActualProfit ratio

YOY change

YOY change(%)

Net sales

4,410

4,758

348

108%

Cost of sales

1,935

2,033

97

105%

SGA expenses

1,625

2,069

444

127%

Operating income

849

-193

77%

Non-operating
income/losses

27-33

－

Ordinary income

876-227

74%

19.3%

655

13.8%

-6
19.9%

649

13.7%

Extraordinary
income/losses--10-10－

Income taxes

345215-13062%

Net income531-107

80%

Copyright (c) 2014 Marvelous Inc. All rights reserved.

12.0%

424

8.9%

5

Financial Highlights (by Quarter)(Unit: million yen)

Copyright (c) 2014 Marvelous Inc. All rights reserved.

6

Financial Highlights – Segment Results
1Q FY ended
March 2014

1Q FY ending March 2015

(Unit: million yen)
ActualActual

YOY change

YOY change(%)

Online Game Business

Online GameBusiness

1,944

Consumer Game
●Business

1,677

1,278

-399

76%

Audio & VisualBusiness788

825

36105%

4,410

4,758

348108%●●Net Sales (total)

2,656711137%●Online GameBusiness

181395213218%●Consumer GameBusiness739298-440

40%●Audio & VisualBusiness

183

22844124%

1,104922-182

83%-255-266-10104%

849

655

-193

77%

Segment Income(total)Adjustments &eliminations
Operating Income(total)Point

Copyright (c) 2014 Marvelous Inc. All rights reserved.

• Net increase in sales due to favorable
performance of app games• Year-earlier unprofitable titles resolved

Consumer Game Business• No new titles were released this firstquarter• Decline in repeat sales in reaction tostrong sales in the first quarter of theprevious fiscal year

Audio & Visual Business• Solid performance of classic titles• Continued strong sales of stage
performance related DVDs

7

Financial Highlights (Sales Breakdown by Quarter)■Audio & Visual Business■Consumer Game Business■Online Game Business

Unit: million yen(percent of sales)

5,664
5,435
5,175

4,887

(15.0%)(15.7%)(13.7%)

5,080

4,239

4,758

4,410
(20.7%)(21.9%)(17.3%)(17.9%)(22.2%)

3,016(38.9%)(26.9%)(47.8%)(40.3%)(50.2%)(26.3%)(32.7%)(38.0%)(31.9%)(21.8%)(51.9%)(36.1%)(45.9%)(36.7%)

Fiscal Year ended March 2013

Copyright (c) 2014 Marvelous Inc. All rights reserved.

(44.1%)(39.0%)(45.4%)(46.1%)

Fiscal Year ended March 2014(55.8%)FY endingMarch 20158

Balance Sheet Highlights
・ Decrease in current assets due to dividend payments and income taxes, etc.
・ Increase in noncurrent assets from reasons including accounting recognition of PUZZLE &DRAGONS Z Tamer Battle consoles
・ Increase in current liabilities from reasons including payment for above consoles partly
coming due within the next month・ Decrease in net assets due to difference between recognized net income and dividend
payment(Unit: million yen)

End of March 2014

End of June 2014

ChangeCurrent assets (total)

14,58314,085-498

Noncurrent assets (total)

2,233

2,730

496

16,816

16,815

-1

4,840

5,089

248

5464

9

Total Liabilities

4,895

5,153258

Net Assets (total)

11,921

11,661-259

Total Assets
Current liabilities (total)
Noncurrent liabilities (total)

Copyright (c) 2014 Marvelous Inc. All rights reserved.

9Fiscal Year Ending March 2015
Business Forecast10Fiscal Year Ending March 2015 Business Forecast

Initial business forecast projections unchanged
Fiscal Year ending
March 2015

First Half

Second Half

Full Year(Unit: million yen)

Forecast

Forecast

Forecast Profit ratio

YOY change(Amount)(%)

Net sales

10,30014,70025,000－4,669 123.0%

Operating income

1,210

2,590

3,800

15.2%

793 126.4%

Ordinary income

1,205

2,585

3,790

15.2%

748 124.6%

723

1,551

2,274

9.1%

391 120.8%

Net income(Reference)
Results for Fiscal Year
ended March 2014

First Half

Second Half

Full Year(Unit: million yen)

ActualActualActualProfit ratio

Net sales

9,585

10,744

20,330－Operating income

1,365

1,641

3,006

14.8%

Ordinary income

1,385

1,656

3,041

15.0%

860

1,021

1,882

9.3%

Net income

Copyright (c) 2014 Marvelous Inc. All rights reserved.

11

Fiscal Year Ending March 2015 Business Forecast

Maintaining 2-digit growth for 3 years running
Fiscal Year ended March 2014 had over 20% growthin both sales and profits
28,000Net sales
売上高25,000Operating income
営業利益20,33021,00017,57914,41314,000

3,006
2,329

7,000

4,500

3,800

Up
15.6%

Up
22.0%

1,439

Up23.0%

Up
26.4%

3,000

Up
29.0%

Up
61.9%

1,50000(Unit: million yen)

6,000

Fiscal Year ended
March 2012
(simple sum)

Copyright (c) 2014 Marvelous Inc. All rights reserved.

Fiscal Year ended
March 2013

Fiscal Year ended
March 2014

Fiscal Year ending
March 2015 (forecast)

12

Fiscal Year Ending March 2015 Segment Forecasts
Full-year business forecast projections for scale expansion in segment sales
First-half expected to decline compared with the year-earlier period due tosales backlash after concentration in the earlier period and effects ofstrategic investmentsFiscal Year ending March 2015
(Unit: million yen)
Online Game

● Business

1H Forecast

Results for Fiscal Year ended March 2014

2H Forecast

Full-Year
Forecast

1H2H

Full Year

5,200

5,300

10,500

3,960

4,917

8,877

3,500

6,800

10,300

3,763

3,866

7,630

1,600

2,600

4,200

1,861

1,963

3,825

10,30014,70025,0009,585

10,744

20,330

670

770

1,440

218

524

742

750

1,770

2,520

1,273

994

2,268

340

580

920

350

571

921

Segment Income (total)

1,760

3,120

4,880

1,842

2,089

3,932

Adjustments & eliminations-550-530-1080-477-448-925

Operating Income (total)

1,210

2,590

3,800

1,365

1,641

3,006

Consumer GameNet Sales ● Business

Audio & Visual● Business

Net Sales (total)
Online Game

Segment ● Business
Consumer Game
Income● Business
Audio & Visual● Business

Copyright (c) 2014 Marvelous Inc. All rights reserved.

13

Segment Results

Copyright (c) 2014 Marvelous Inc. All rights reserved.

14

Online Game Business

FY ending March 2015 Progress Status

1Q Results(Unit: million yen)

■Net sales ■Operating income

Net sales: Growth from strong app games
Profits:

Enhanced profit margins fromefficiency gains

Title Performance● Favorable sales growth of “Logres of Swordsand Sorcery: Goddess of Ancient”● Browser game classics also have strong
performance● Rigorous title selection criteria compelledtermination of some titles and lump-sum
amortization of preparatory development cost
“Browser Sangokushi”(PC browser)
Service launched in July 2009“Logres of Swords and Sorcery:Goddess of Ancient”(native app)
Service launched in December 2013

1Q Fiscal Year

1Q Fiscal Year2014年3月期
1Q ending
2015年3月期
1Q
ended March 2014
March 2015
“Ikki-Tousen Burst Fight”(Mobile browser)
Service launched in May 2012

Title
Rollouts©Marvelous Inc.

Copyright (c) 2014 Marvelous Inc. All rights reserved.

©Marvelous Inc. Aiming Inc.

©2011 塩崎雄二・ワニブックス／一騎当千集鍔闘士血風録パートナーズ©Marvelous Inc.

15

Online Game BusinessInitiatives Starting in 2Q of FY Ending March 2015
Net Sales (Unit: million yen)

Television commercial for “Logres of Swords andSorcery: Goddess of Ancient” under preparation
The Company’s first free-to-play game for PS Vita
“HIGH SCHOOL D×D NEWFIGHT” scheduled fordissemination

12,000FY
ending March 2015 (forecast)
2015年3月期（予）10,500FYended March 20142014年3月期

8,877

9,000

6,000

5,200

5,300
4,917

3,960

Planning and development of new titles to continue
centered on native apps

3,0000FirstHalf
上期Title Rollouts

Second下期 HalfFullYear
通期Segment Income (Unit: million yen)

HIGH SCHOOL D×D NEWFIGHT
Scheduled for release this summer

IP forthe world©2013 Ichiei Ishibumi・Miyama-ZERO/PUBLISHED BY KADOKAWACORPORATION FUJIMISHOBO/HighSchoolDD NEW PARTNERS©Marvelous Inc.

Original IP

IP forthe worldFirstHalf
上期

Copyright (c) 2014 Marvelous Inc. All rights reserved.

Second
下期HalfFullYear通期16Consumer Game Business

FY ending March 2015 Progress Status

1Q Results(Unit: million yen)

■Net sales ■Operating income

Net sales: Decline due to difference in the timing of title
Profits:introductions
Decline in profit margins due to backlash inrepeat sales

Title Performance● Service for “PUZZLE & DRAGONS Z Tamer Battle” as
new amusement machine for young children initiated onJune 26, 2014 (contributions to business results beginningin the second quarter)● No new consumer game titles in the first quarter● Decline in repeat sales in reaction to concentrated sales inthe first half of the previous fiscal year

Pokémon TRETTA(Amusement)

Title
Rollouts

Running strong since July 2012

1Q Fiscal Year2014年3月期
1Q
endedMarch 2014

1Q Fiscal Year2015年3月期
1Q
endingMarch 2015

PUZZLE & DRAGONS Z
Tamer Battle(Amusement)
Running strong since June 2014

© GungHo Online Entertainment, Inc. / Marvelous Inc.
©2014 Pokémon. ©1995-2014
Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MARV

Copyright (c) 2014 Marvelous Inc. All rights reserved.

17Consumer Game BusinessInitiatives Starting in 2Q of FY Ending March 2015
Net Sales (Unit: million yen)

Released “SENRAN KAGURA 2” onAugust 7, 2014

FY2015年3月期（予）ending March 2015 (forecast)
FY2014年3月期
ended March 2014

Line-up of numerous new titles, including“Bakumatsu Rock: Ultra Soul” and “KINKI NO
MAGNA,” to be released in the 2nd quarter and later

Title Rollouts SENRAN KAGURA 2 (3DS)
Released August 7, 2014

上期
First
Half

下期HalfSecond

通期
Full
Year

Segment Income (Unit: million yen)©2014 Marvelous Inc.

Bakumatsu Rock: Ultra Soul(PS Vita/PSP)KINKI NO MAGNA (3DS)
Scheduled for release October 2, 2014

Scheduled for release September 25, 2014

上期HalfFirst©2014 Marvelous Inc.

Copyright (c) 2014 Marvelous Inc. All rights reserved.

下期 HalfSecond

通期FullYear©2014 Marvelous Inc.

18

Audio & Visual Business

FY ending March 2015 Progress Status

1Q Results■Net sales ■Operating income(Unit: million yen)

Net sales: Main line series continuing theirProfits:

1,000

strong performances
Earnings contributions fromexpanding repeat sales

Popular broadcast, Sunday
mornings at 8:30, on Asahi
Broadcasting Corporation (ABC)and TV Asahi affiliated stations

MUSICAL THE PRINCE OF TENNIS

825788400750

Title Performance● Audio-visual product commercialization of the TV
500
anime “HAPPINESSCHARGE PRETTY CURE!”● Favorable DVD sales related to the “Stage250
Yowamushi Pedal” and “Musical HAKUOKI” series● Solid revenues from secondary usage charges such
0as sales and distribution of legacy production
overseas programs
HAPPINESSCHARGE PRETTY CURE!

500

300

228
183

200
1000

1Q Fiscal Year
1Q Fiscal Year2014年3月期
1Q ending
2015年3月期
1Q
ended
March 2014
March 2015

Stage Yowamushi Pedal
Musical HAKUOKI
Ep. Inter-high The First Result (DVD) HAKU-MYU LIVE (DVD)

Performances December 2013 – March 2014

Released January 2014

Released April 2014

©TAKESHI KONOMI／SHUEISHA,NAS,THE NEW PRINCE OF TENNIS PROJECT©TAKESHI KONOMI／SHUEISHA,MUSICAL THE PRINCE OF TENNISPRODUCTION COMMITTEE©Wataru Watanabe (Akitashoten) 2008
©Wataru Watanabe (Akitashoten) 2008/
MarvelousAQL, D×L Creation, Entertainment Plus

©IDEA FACTORY・DESIGN FACTORY/Musical HAKUOKI Project

Title
Rollouts©TOEI ANIMATION. ALL RIGHTS RESERVED

Copyright (c) 2014 Marvelous Inc. All rights reserved.

19

Audio & Visual BusinessInitiatives Starting in 2Q of FY Ending March 2015

Video product commercialization of newanime “BakumatsuRock” and “Tokyo Ghoul,”both on air since July
Tickets sold out for additional performanceof new stage production “Stage K”

Net Sales (Unit: million yen)
4,500

2,600

3,000

1,963

1,600

1,5000First
上期Half

Tokyo Ghoul

BakumatsuRockBroadcaststartedin July 2014

Broadcast started
in July 2014©2014 Marvelous Inc. /BakumatsuRock
Production Committee©Sui Ishida/Shueisha,Tokyo Ghoul
Production Committee

Stage
Yowamushi Pedal
Ep.HAKOGAKUThe Beast
On the Road

Stage K
Performancesscheduled inAugust 2014

Performancesscheduledin October 2014
©GoRA・GoHands／k-project©GoRA・GoHands／stage k-project

Copyright (c) 2014 Marvelous Inc. All rights reserved.

©Wataru Watanabe (Akitashoten) 2008 / Yowamushi Pedal Production Committee 2013
©Wataru Watanabe (Akitashoten) / Marvelous, Toho, D×L Creation

3,825

FY2014年3月期
ended March 2014

1,861

Performance scheduled for latest
production of “Stage Yowamushi Pedal”
Title Rollouts

4,200

FY2015年3月期（予）ending March 2015 (forecast)Second下期 Half

Full Year
通期

Segment Income (Unit: million yen)921 920

1,000750571 580
5003503402500

上期 Half
First

下期 Half
Second

通期YearFull20Thank you for your kind attention.
Inquiries
Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL:http://www.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 businessperformance to differ materially from those presented.

Copyright (c) 2014 Marvelous Inc. All rights reserved.

21