Stock Code: 7844
(First Section of Tokyo StockExchange)

Marvelous Inc.

Fiscal Year Ending March 31, 2016
Third Quarter

Results Briefing
Materials

January 29, 2016

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 anduncertainties which could cause results including actual businessperformance to differ materially from those presented.

Contents

Fiscal Year Ending March 2016,
Third Quarter Results Summary (Cumulative)
Segment Results and Full-Year Business Forecast

Copyright (c) 2016 Marvelous Inc. All rights reserved.

2

Fiscal Year Ending March 2016,
Third Quarter Results Summary (Cumulative)

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Earnings Highlights
 The third quarter (cumulative) of fiscal year ending March 2016 marked net sales and operating income
growth of 133.1％ and 135.8％, respectively, compared with the year-earlier period The online game business expanded strongly compared with the year earlier, marking higher sales andearnings
Net sales
売上高

Operating
営業利益income

30,0006,000

24,22925,00018,208

3,972
4,000

Net Sales

2,925

15,000

5,000

3,000

10,000

2,000

5,000

1,000

0

3Q Fiscal Year
ended March 2015
(cumulative)

Copyright (c) 2016 Marvelous Inc. All rights reserved.

3Q Fiscal Yearending March 2016
(cumulative)

Operating Income

20,000(Unit: million yen)04

Income Statement
 Continued growth in sales and earnings compared with the year-earlier period
 Despite higher costs for increased TV ads and other advertising, cumulative earnings margins maintained
the level of the year-earlier period(Unit: million yen)

3Q FY ended March 2015 3Q Fiscal Year ending(cumulative)
March 2016 (cumulative)
ActualProfit ratio

ActualProfit ratio

YOY change(Amount)(%)

Net sales

18,208-24,229-6,020

133.1%

Cost of sales

7,802-

9,548-

1,745

122.4%

SGA expenses

7,480-

10,708-3,228

143.2%

Thereof advertisingexpenses

1,535-

2,536-

1,001

165.2%

Operating income

2,925

16.1%

3,972

16.4%

1,046

135.8%

Non-operating
income/losses

186-−31-−218-

Ordinary income

3,11217.1%

3,940

16.3%

828

126.6%

Extraordinary
income/losses

−10-

−54-

−44-

Income taxes

1,226-

1,195-−31

97.4%

Profit attributable toowners of parent

1,875

10.3%

2,690

11.1%

815

143.5%

Copyright (c) 2016 Marvelous Inc. All rights reserved.

5

Development of Net Sales and Operating Income (Quarterly) On a quarterly basis, earnings decreased, reflecting higher costs, withsales sustained at a high level(Unit: million yen)
10,000

売上高
Net sales

2,500

営業利益
Operating income

8,233

8,402
8,045

7,781

8,000
6,629

1,4861,464

5,080
4,758

1,130

4,410
4,000

849

1,500

1,376795

1,000845793655

Operating Income

Net Sales

5,175

6,820
1,475

5,664

6,000

2,000

515
2,000500

00
1Q

2Q

3Q

2014年3月期
FY ended
March 2014

Copyright (c) 2016 Marvelous Inc. All rights reserved.

4Q

1Q

2Q

3Q

2015年3月期
FY ended
March 2015

4Q

1Q

2Q

3Q

2016年3月期
FY endingMarch 2016

6

Segment Results(Unit: million yen)
3Q FY ended
March 2015(cumulative)

3Q Fiscal Yearending March
2016 (cumulative)

ActualActual

YOY change(Amount)(%)●Online GameBusiness

10,561

15,3524,790

145.4%●

Consumer GameBusiness

4,492

5,919

1,426

131.8%

Audio & Visual●Business

3,166

2,963

−203

93.6%

Total

18,20824,2296,020

133.1%●

Online GameBusiness

2,411

3,368

956

139.7%●

Consumer GameBusiness

497653155131.2%●

Audio & VisualBusiness

737

797

59

108.1%

Total

3,646

4,818

1,171132.1%

Adjustments & eliminations

−721

−846

−125117.4%

Operating Income Total

2,925

3,972

1,046

135.8%Net Sales

Segment
IncomeCopyright (c) 2016 Marvelous Inc. All rights reserved.

POINT● Online Game Business• “Logres of Swords and Sorcery”
continues as major earnings sourceand earnings driver● Consumer Game Business• U.S. subsidiary posts favorable
performance of new titles and repeatpurchases• Amusement sector improved
compared with the year earlier● Audio & Visual Business• Sales declined as recognition ofrevenues from large-scale stage
performances concentrates on thefourth quarter• Higher earnings due to increased
income from sales related tosecondary usage such as sales fromvideo dissemination and program sales
7

Sales Structure by Segment (Quarterly) The online game business sees measures and policies in app games underperform in someareas; the audio & visual business marks valley in stage performances and musical operations;the consumer game business displays growth due to multiple title introductions(Unit: million yen)
9,000

Unit: million yen (percent of sales)
8,233

8,000

■ Audio & Visual Business■ Consumer Game Business

7,000■ Online Game Business

6,629

6,000
5,175
4,410

3,000

788
(17.9%)
1,677(38.0%)(15.0%)
1,073(20.7%)

1,113(21.9%)

2,086

1,660

(40.3%)(32.7%)

825(17.3%)
2,206(38.9%)

2,152(32.5%)

2,307(44.1%)(45.4%)

1Q

2Q

3Q

2,086(24.8%)

2,177(28.0%)

1,278(26.9%)(52.2%)(46.1%)

2,656(55.8%)

4Q

1Q

2Q

2,609

1,655(20.6%)

862(11.1%)(15.6%)

4,443

2,016(39.0%)

1,884912(11.3%)

1,061

3,461
1,944(19.4%)

7,781
1,189(14.2%)(22.9%)

4,758

2,000

1,000

1,322

850

5,080

5,000

4,000

1,019
(15.4%)

5,664

6,820

1,532(18.6%)

8,402
8,045

4,818(58.5%)

5,479(68.1%)

5,129(61.0%)

4,743(61.0%)

1Q

2Q

3Q

(65.2%)

0Fiscal Year
ended March 20142014年3月期
Copyright (c) 2016 Marvelous Inc. All rights reserved.

3Q

2015年3月期
Fiscal Year
ended March 2015

4Q

Fiscal Year ending
2016年3月期
March 20168

Balance Sheet (Summary) Current assets decreased, reflecting lower cash and deposits after payment of income tax anddividends, acquisition of G-MODE Corporation stocks, and purchase of own stocks in September Accounting recognition of goodwill associated with acquisition of share capital of G-MODE
Corporation resulted in higher noncurrent assets
 Payment of accrued income taxes resulted in lower current liabilities(Unit: million yen)

End ofMarch 2015

End ofDecember 2015

ChangeCurrent assets (total)

18,624

15,211−3,412

Noncurrent assets (total)

3,414

4,624

1,209

22,03919,835−2,203

8,535

6,745

−1,790

52

35

−16

Total Liabilities

8,588

6,781

−1,807

Net Assets (total)

13,45013,054−396

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

Copyright (c) 2016 Marvelous Inc. All rights reserved.

9Segment Results and Full-Year Business Forecast

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Fiscal Year Ending March 2016, Full-Year Business Forecast(Breakdown by Segment) Change in the breakdown of results projections by segment(Unit: million yen)

Full YearFY ended
March 2015

FY ending March 2016
Current
projection

ActualPreviousprojection

YOY change

Difference(Amount)(%)

Online Game
● Business

15,37922,70023,000

−300

7,320

147.6%

Consumer Game
● Business

6,376

7,500

7,200

300

1,123

117.6%

Audio & Visual● Business

4,699

4,800

4,800

0100

102.1%

Total

26,44135,00035,00008,558132.4%

3,815

5,000

5,550

−550

1,184131.0%

Consumer Game
● Business

502840550290337

167.2%

Audio & Visual● Business

1,089

1,300

1,100

200

210

119.3%

Total

5,407

7,140

7,200

−60

1,732

132.0%

Adjustments & eliminations−995−1,140−1,20060−144114.6%

Operating Income

4,412

6,000

6,000

0

1,587

136.0%

Ordinary Income

4,583

6,000

6,000

0

1,416

130.9%

Profit attributable toowners of parent

2,178

4,100

4,100

0

1,921

188.2%Net Sales

Online Game
● Business

Segment
IncomeCopyright (c) 2016 Marvelous Inc. All rights reserved.

11

Online Game Business:
FY Ending March 2016 Progress Status
Status as of 3Q FY ending March 2016
“Logres” continues to drive performance, with sustainedsales and earnings growth compared with the year-earlier
period■Net sales ■Operating income

 “Logres of Swords and Sorcery: Goddess of Ancient”
driving overall performance as major earnings source Service started for “Logres of Swords and Sorcery:
Goddess of Ancient” on October 22 in Taiwan, Hong Kong,and Macau, rising to the No. 1 position in Taiwan's topseller ranking (*as of December 4, 2015) and marking afavorable launch Service started for social game “VALKYRIE DRIVE -SIREN-”
at Mobage, GREE, and dgame on November 25〈Title Rollouts〉

Logres of Swords and Sorcery: Goddess of Ancient

15,352

16,0003,000

10,561
2,411

8,000

2,000

4,000

1,000

0

3Q FY endedMarch 2015
(cumulative)

3Q FY ending
March 2016
(cumulative)

0

VALKYRIE DRIVE -SIREN-(native app)(mobile browser)

Service launched in December 2013 (within Japan)

Service launched in November 2015

©Marvelous Inc. Aiming Inc.

©Marvelous Inc. ©VALKYRIE DRIVE PARTNERS

Copyright (c) 2016 Marvelous Inc. All rights reserved.

4,000
3,368

12,000

Title Performance(Unit: million yen)

12Online Game Business:
Initiatives Starting in 4Q of FY Ending March 2016
■Net sales ■Operating incomeTOPICS
 Strengthening of game contents for existing users

25,000 Improvements in profit margins through cost control ofadvertising expenses and other costs

20,000 Starting with Taiwan, Hong Kong, and Macau, aggressive
promotion of initiatives surrounding “Logres of Swords andSorcery: Goddess of Ancient” also to be taken in otherregions including mainland China

15,000 Promotion of global initiatives involving other titles

5,000(Unit: million yen)

22,700

8,000

6,000
15,379

5,000

3,815

4,000

10,0002,000

 New applications for release in the coming fiscal year
currently under focused development〈Title Rollouts〉

0

Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year0

劍與魔法王國 遠古的女神（Logres of Swords and Sorcery: Goddess of Ancient）
Service launched in Taiwan, Hong Kong, and Macau on October 22, 2015.

Copyright © Marvelous Inc. Aiming Inc.
Copyright © Garena Online.

Copyright (c) 2016 Marvelous Inc. All rights reserved.

13

Consumer Game Business:
FY Ending March 2016 Progress Status
Status as of 3Q FY ending March 2016
U.S. subsidiary sees robust sales of game software and recovery in theamusement sector, reflected in sales and earnings growth compared withthe year-earlier period■Net sales ■Operating income (Unit: million yen)
5,919
6,000
800
653

4,492
4,500

Title Performance

600497

 Sales launch of three new titles:- “NET HIGH”

3,000

400

1,500

200

- “VALKYRIE DRIVE -BHIKKHUNI-”- “NITRO PLUS BLASTERZ -HEROINES INFINITE DUEL-”
 Sales launch of “The Legend of Heroes: Trails of Cold Steel” (licenser: NihonFalcom) by Marvelous USA, showing favorable performance including repeatsales

0

3Q FY endedMarch 2015(cumulative)

 “Pokémon TRETTA” and “MONSTER HUNTER SPIRITS” also doing well〈Title Rollouts〉

NET HIGH(PS Vita)

Released November 26, 2015

©2015 Marvelous Inc.

VALKYRIE DRIVE-BHIKKHUNI(PS Vita)

NITRO PLUS BLASTERZ-HEROINES INFINITE DUEL(PS4/PS3)

Released December 10, 2015

Released December 10, 2015

©2015 Marvelous Inc.
©VALKYRIE DRIVE PARTNERS

Copyright (c) 2016 Marvelous Inc. All rights reserved.

3Q FY endingMarch 2016(cumulative)

0The Legend of Heroes:
Trails of Cold Steel（PS3/PS Vita）

Released December 22, 2015 (North America)©EXAMU Inc.／Nitroplus ©2015 Marvelous Inc.／EXAMU Inc.／Nitroplus©Nitroplus ©Nitroplus ©GUILTY CROWN COMMITTEE ©SORATOKUMO 2015
©Nitroplus 2015 ©Nitroplus ©Seikaisha ©TOEI ANIMATION, Nitroplus / EFP Society©Nitroplus / TYPE-MOON ©oceanus/2013 Gargantia on the verdurous Planet Committee©PSYCHO-PASS Committee ©Nitroplus/NorimitsuKaiho,Sadoru Chiba,HOUBUNSHA©2015 Marvelous Inc. ©EXAMU Inc.

© Nihon Falcom Corporation.
All rights reserved.

14

Consumer Game Business:Initiatives Starting in 4Q of FY Ending March 2016
■Net sales ■Operating income (Unit: million yen)

TOPICS

9,000

 Release of “Luminous Arc Infinity Complete Pack” and“SENRAN KAGURA ESTIVAL VERSUS SAKURA EDITION”
scheduled for March From U.S. subsidiary Marvelous USA, sales launch of “Returnto PopoloCrois: A STORY OF SEASONS Fairytale” (Japanesetitle: POPOLOCROIS BOKUJO MONOGATARI) scheduled forMarch Various titles under development for sales launches in the
coming fiscal year such as “UPPERS,” and “BOKUJOMONOGATARI MITTSU NO SATO NO TAISETSU NA
TOMODACHI Service start of “Dragon Quest: Monster Battle Scanner”
scheduled for the summer of 2016

7,500
7,500

Scheduled for release
March 10, 2016©2015 Marvelous Inc.

6,000
840

3,000

UPPERS(PS Vita)

Scheduled for release
March 17, 2016

Scheduled for release
March 1, 2016

Scheduled for release
April 21, 2016

Copyright (c) 2016 Marvelous Inc. All rights reserved.

©2016 Marvelous Inc.

600502300

1,500

Return to PopoloCrois:
A STORY OF SEASONS
Fairytale (3DS)

Licensed to and published by XSEED Games /Marvelous USA, Inc.

900

4,500

SENRAN KAGURAESTIVAL VERSUSSAKURA EDITION(PS4)©2015 Marvelous Inc.

1,200

6,376

〈Title Rollouts〉
Luminous Arc Infinity
Complete Pack
(PS Vita)

1,500

0

Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year

0

BOKUJOMONOGATARIMITTSU NO SATONO TAISETSU NA
TOMODACHI(3DS)

Dragon Quest:
Monster Battle Scanner(Amusement)

Scheduled for releaseearly summer of 2016

Launch scheduled forsummer of 2016©2016 Marvelous Inc. All Rights Reserved.

©2015 ARMOR PROJECT/BIRD STUDIO/Marvelous/
SQUARE ENIX All Rights Reserved.

15

Audio & Visual Business:
FY Ending March 2016 Progress Status■Net sales ■Operating income (Unit: million yen)

Status as of 3Q FY ending March 2016
Despite lower sales compared with the year-earlier period owing to a lag in
4,500
revenue recognition from stage performance operations, Company-funded
anime products performing strongly, with earnings growth driven by favorable
sales of video dissemination, etc.

Title Performance

3,166

 Continued strong package sales of “My Teen Romantic Comedy SNAFU
TOO!”
 Income from secondary usage such as video dissemination sales andprogram sales, respectively from the Company's library, developedfavorably Stage performances of “MUSICAL THE PRINCE OF TENNIS 3rd Season
SEIGAKU vs St. RUDOLPH” September to November (revenuerecognition in 4Q)
 Stage performances of “Stage [Yowamushi Pedal] Ep. IRREGULAR “TheRival Peaks”” October to November (revenue recognition in 4Q)〈Title Rollouts〉

MUSICAL THE PRINCE OFTENNISMy Teen Romantic Comedy
3rd Season
SNAFU TOO!
SEIGAKU vs St.RUDOLPH
Sales launch of the sixth volume©WATARU WATARI, SHOGAKUKAN／OREGAIRU2 PRODUCTION COMMITTEE

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

Copyright (c) 2016 Marvelous Inc. All rights reserved.

2,963

3,000

1,000797

737

500

1,5000 Stage performances of “MUSICAL AOHARUTETSUDO” in November(revenue recognition in 4Q)

on December 29, 2015

1,500

3Q FY ended
March 2015
(cumulative)

Stage [Yowamushi Pedal]
Ep. IRREGULAR“The Rival Peaks”
PerformancesOctober to November 2015

©Wataru Watanabe (Akitashoten) 2008 / Yowamushi Pedal GR Film Partners©Wataru Watanabe (Akitashoten) 2008 / Marvelous, TOHO, SEGA LIVE CREATION

3Q FY endingMarch 2016
(cumulative)

0MUSICALAOHARUTETSUDO
Performances in November 2015

©AOHARU

16

Audio & Visual Business:
Initiatives Starting in 4Q of FY Ending March 2016
■Net sales ■Operating income



TOPICS

6,000

Broadcasting of Company-financed TV anime “Divine Gate” started inJanuary

5,000

Broadcasting of TV anime “MAHO GIRLS PRECURE!” scheduled tostart in February(Unit: million yen)
2,000

4,800

4,699

1,500
1,300

4,000
1,089



Stage performances of “MUSICAL THE PRINCE OF TENNIS 3rd
SEASON SEIGAKU vs YAMABUKI” scheduled for the December 2015
to February 2016 period (*revenue recognition in the next fiscal year)

Stage performances of “Musical HAKUOKI Stories of Shinsengumi” inJanuary

2,000



Stage performances of “Stage [Yowamushi Pedal] “ A New Team,Beginning ”,” “Cute High Earth Defense Club LOVE!STAGE!,” and“musical -au revoir, Sorcier-” scheduled successively for March 2016

1,000



Additionally, line-up of multiple new products under preparation for
release in the next fiscal year

1,000

3,0005000

Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year

0〈Title Rollouts〉
Divine Gate
TV broadcasting startedin January 2016

MUSICAL THE PRINCEStageOF TENNIS 3rd SEASONMusicalHAKUOKI[Yowamushi
Pedal] “Cute High Earth
MAHO GIRLS SEIGAKU vs YAMABUKI
Defense Club
musicalStories of“ A New Team,Performances scheduled for
PRECURE!
LOVE!STAGE!” -au revoir, Sorcierthe Dec. 2015 to Feb. 2016
theShinsengumi
Beginning”
Schedule to air on TV inFebruary 2016

period (revenue recognition inthe next fiscal year)

Performances inJanuary 2016

©IDEA FACTORY・DESIGN FACTORY/Musical HAKUOKI Project©GungHo Online Entertainment／Divine Gate World Council©Toei Animation. All RightsReserved©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI / 2015 MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2016 Marvelous Inc. All rights reserved.

Performances scheduled
for March 2016

©Wataru Watanabe (Akitashoten) 2008 /Yowamushi Pedal GR Film Partners©Wataru Watanabe (Akitashoten) 2008 /Marvelous, TOHO, SEGA LIVE CREATION

Performances scheduled
for March 2016

Performances scheduledfor March 2016

ⓒHozumi／SHOGAKUKAN Flower Comics αⓒmusical-au revoir, Sorcier- projectⓒKurari Umatani／Binan High School drama club17

Fiscal Year Ending March 2016, Full-Year Business Forecast
 Initial Company-level results projections for the full fiscal year unchanged
 Aiming to achieve double-digit growth in the fourth consecutive fiscal year
(Unit: million yen)

40,000Netsales
売上高

8,000

Operating
営業利益income

35,000(percent change)(+32.4%)35,000

7,000

6,000
26,441

30,000(+36.0%)6,000(+30.1%)

25,00020,33020,000

5,000

4,412
(+46.8%)(+15.6%)

17,579

4,000

3,006

(+29.0%)15,000

3,000

2,329
10,000

2,000

5,000

1,00000
FY ended
March 2013

Copyright (c) 2016 Marvelous Inc. All rights reserved.

FY ended
March 2014

FY ended
March 2015

FY ending March
2016 (forecast)18

Thank you for your attention.
Inquiries
Administration Division, 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 Companyand 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) 2016 Marvelous Inc. All rights reserved.