Stock Code: 7844 (First Section of Tokyo Stock Exchange)

MarvelousAQL Inc.

Fiscal Year Ended March 31, 2014

Financial Results Briefing
May 13, 2014

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 business performance to differ
materially from those presented.

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Contents

Fiscal Year Ended March 2014 Financial Results Summary

Fiscal Year Ending March 2015 Business Forecast
Segment Results
Company Direction

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

2

Fiscal Year Ended March 2014
Financial Results Summary

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

3

Earnings Highlights(Operating Profit Ratio)

Net sales¥20.3 billion

14.8%
●

(Unit: million yen)

13.3%
●

Year-over-year: Up 15.6%

Operatingincome¥3.0 billion

Year-over-year:

Operatingprofit ratio
Year-over-year:

Up 29.0%

14.8%
Up 1.5%Main Factors
・Pokémon TRETTA continues to have strong
results
・Consumer game software has strong sales
・Stage Yowamushi Pedal becomes a big hit

Fiscal Year ended
March 2013

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Fiscal Year ended
March 20144

Financial Highlights (P/L)

Strong, 2-digit year-over-year growth continues insales and profits(Unit: million yen)

FY ended March 2013
ActualProfit ratio

FY ended March 2014
ActualProfit ratio

YOY change

YOY change(%)

Net sales

17,57920,330

2,751

116%

Cost of sales

9,462

10,384921

110%

SGA expenses

5,787

6,939

1,152

120%

Operating income

2,329

676

129%

39－

715

131%

Non-operating
income/losses
Ordinary income

13.3%

-3
2,325

3,006

14.8%

35
13.2%

3,041

15.0%

Extraordinary
income/losses

0-59-59－

Income taxes

406

1,100

693

270%

Net income

1,919

-37

98%

10.9%

1,882

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

9.3%

5

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

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

6Financial Highlights – Segment Results(Unit: million yen)

FY ended
March 2013
ActualFY ended
March 2014
ActualPoint

YOY change (%)

Online GameBusiness

7,269

8,877

122%

●

Consumer GameBusiness

7,059

7,630

108%

●

Audio & VisualBusiness

3,256

3,825

117%

17,57920,330116%●

Net Sales (total)●

Online GameBusiness●●665742112%

Consumer GameBusiness

1,819

2,268

125%

Audio & VisualBusiness

738

921

125%

Segment Income(total)

Online Game Business• Large revenue increase from investment
in new titles• One-time write-off of development costs
for discontinued titles• Hit titles created from native apps

Consumer Game Business• Strong performance of Pokémon
TRETTA boosts earnings over the fullyear• Game software has healthy sales forold and new titles alike

Audio & Visual Business
3,223

3,932

122%

Adjustments &eliminations-893-925

104%

Operating Income(total)

2,329

3,006

129%

• "Stage Yowamushi Pedal" grows into amajor series and retains foothold• Main attractor titles continue to have firmsales

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

7Financial Highlights (Sales Breakdown by Quarter)Unit: million yen(percent of sales)■Audio & Visual Business■Consumer Game Business■Online Game Business

5,664

5,435
5,175

4,887

(15.0%)(15.6%)(13.7%)

5,080

4,239

4,410
(20.7%)(21.9%)(17.9%)(22.2%)(38.9%)

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

Fiscal Year ended March 2013(36.7%)(44.1%)(39.0%)(45.4%)(46.1%)

Fiscal Year ended March 2014

8Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Balance Sheet Highlights
・ Current assets increase due to greater cash and deposits and to larger
inventories resulting from consumer game software that has beendeveloped but not offered for sale yet
・ Noncurrent assets fall due to goodwill amortization, write-off of online gamedevelopment costs, and recouping investment in stage performances・ Net assets increase due to recorded profit

End of March 2013

End of March 2014

Current assets (total)

12,593

14,583

1,990

Noncurrent assets (total)

2,748

2,233-515

15,341

16,816

1,474

4,570

4,840

270

Noncurrent liabilities (total)

7654-21

Total Liabilities

4,647

4,895

248

Net Assets (total)

10,694

11,921

1,226(Unit: million yen)

Total Assets
Current liabilities (total)

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Change9

Fiscal Year Ending March 2015
Business Forecast

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

10

Fiscal Year Ending March 2015 Business Forecast

Maintaining 2-digit growth in sales and profits
with a powerful lineup of new titles
Fiscal Year ending
March 2015

First Half

Second Half

Full Year(Unit: million yen)

Forecast

Forecast

Forecast

YOY changeProfit ratio(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 MarvelousAQL, 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
28,0006,000
売上高
Net sales

25,000Operating income
営業利益20,33021,00017,57914,41314,0000(Unit: million yen)

3,800
3,006

Up
22.0%

1,439

Fiscal Year ended
March 2012
(simple sum)

4,500

Up
15.6%

2,329
7,000

Up
23.0%

Up
26.4%

3,000

Up
29.0%

1,500

Up
61.9%

Fiscal Year endedMarch 2013

Fiscal Year ended
March 2014Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Fiscal Year endingMarch 2015
(forecast)

012Fiscal Year Ending March 2015 Segment Forecasts
Expecting increased full-year revenues and profits in all segments
1Q and 1H will have year-over-year decline due to sales lull
following last year's spike in sales and prior investments
Fiscal Year ending March 2015
(Unit: million yen)

●Net Sales ●●1H Forecast 2H Forecast

1Q

1H

2H

Full Year

Online GameBusiness

1,920

4,000

6,500

10,500

1,944

3,960

4,917

8,877

Consumer GameBusiness

1,200

4,7005,600

10,300

1,677

3,763

3,866

7,630

Audio & VisualBusiness

700

1,600

2,600

4,200

788

1,861

1,963

3,825

3,820

10,30014,70025,000

4,410

9,585

10,744

20,330Net Sales (total)

Segment
Income1Q

Results for Fiscal Year ended March 2014
Full-Year
Forecast●Online GameBusiness

200400

1,040

1,440

181

218

524742●

Consumer GameBusiness

210

1,050

1,470

2,520

739

1,273

994

2,268

●

Audio & VisualBusiness

170

340

580

920

183

350

571

921

Segment Income (total)

580

1,790

3,090

4,880

1,104

1,842

2,089

3,932

Adjustments & eliminations-310-580-500-1,080

-255

-477

-448

-925

Operating Income (total)

270

1,210

2,590

3,800

849

1,365

1,641

3,006

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

13

Segment Results

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

14

Online Game BusinessResults for Fiscal Year Ended March 2014
(Unit: million yen)

■Net sales ■Operating income

Net sales: Growth from investment in new titles
Profits:

Drop in profit ratio due to increased
costs for development, operation, andadvertising

Title Performance● "Logres of Swords and Sorcery: Goddess of Ancient"becomes our first hit in app games● Browser game classics have strong performance● Selected unprofitable titles discontinued in Japan andabroad with one-time write-off of development
expenses

Fiscal Year ended Fiscal Year ended
March 2013
March 2014

Title Rollouts“Logres of Swords and Sorcery:
Goddess of Ancient”(native app)
Service launched in December 2013

“Browser Sangokushi”“Ikki-Tousen Burst Fight”(PC browser)(Mobile browser)

Service launched in July 2009

Service launched in May 2012

©MarvelousAQL 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©MarvelousAQL Inc.

©MarvelousAQL Inc. Aiming Inc.

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

15

Online Game BusinessInitiatives for Fiscal Year Ending March 2015
Net Sales (Unit: million yen)

● Focus on our new hit, "Logres of Swords andSorcery: Goddess of Ancient," for further success

FY ending March 2015 (forecast)
FY ended March 2014

● Plan and develop new titles centering on
native apps
● Maintain and enhance classic flagship titles

Title Rollouts

First Half

Second Half

Full Year

Segment Income (Unit: million yen)

IP forthe world

IP forthe worldIP forJapanOriginal IP
上期FirstHalf

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

下期HalfSecond

通期FullYear16

Consumer Game BusinessResults for Fiscal Year Ended March 2014
(Unit: million yen)

■Net sales ■Operating income

Net sales: Up 8% year-over-year
Profits:

Up 24% year-over-year

Title Performance● Pokémon TRETTA turns in solid performance overthe full year
● "BOKUJYO MONOGATARI TSUNAGARU
SHINTENCHI" with the best start of the series● Orders for classic hits drive 1st half results andhigh profit ratios

Fiscal Year ended Fiscal Year endedMarch 2013
March 2014

Title Rollouts
BOKUJYO MONOGATARIBAKUMATSU ROCK (PSP)TSUNAGARU SHINTENCHI (Nintendo 3DS)
Pokémon TRETTA(Amusement)

Released February 27, 2014

Released February 27, 2014©2014 MarvelousAQL Inc. All Rights Reserved.
SUPER MARIO items © 2014 Nintendo.

©2014 MarvelousAQL Inc.

Running strong since July 2012©2014 Pokémon.
©1995-2014 Nintendo/Creatures Inc./GAME FREAK inc.
Developed by T-ARTS and MAQL

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

17

Consumer Game BusinessInitiatives for Fiscal Year Ending March 2015

● Sales start for two new creations in the "SENRANKAGURA" series● "IA/VT -COLORFUL-" and "KINKI NO MAGNA"
lead a large lineup of new titles

Net Sales (Unit: million yen)
FY ending March 2015 (forecast)
FY ended March 2014

● Summer release of new title in kids amusements," PUZZLE & DRAGONS Z Tamer Battle "Title Rollouts

SENRAN KAGURA 2 (3DS)
To be released August 7, 2014

First HalfPUZZLE & DRAGONS Z
Tamer Battle(Amusement)

Full Year

Segment Income (Unit: million yen)

Launch planned for Summer 2014

© GungHo Online Entertainment, Inc. / MarvelousAQL Inc.

Second Half

©2014 MarvelousAQL Inc.

IA/VT -COLORFUL- (PS Vita)

KINKI NO MAGNA (3DS)

To be released July 31, 2014

To be released in 2014

First
Half
上期Second
下期HalfFullYear
通期©2014 MarvelousAQL Inc.
©2014 MarvelousAQL Inc./1st PLACE Co Ltd. | IA PROJECT

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

18

Audio & Visual BusinessResults for Fiscal Year Ended March 2014
(Unit: million yen)

■Net sales ■Operating income

Net sales: Strong trends in series products
Profits:

Profit growth follows revenue growth

Title Performance● "PRETTY CURE" series and "MUSICAL THE PRINCE OFTENNIS" series, perennial favorite content for 10 years,
keep steady trend● Popularity of "Stage Yowamushi Pedal" increases witheach added performance, creating sellouts and solid DVDsales● "Musical HAKUOKI" series, signed-artists "vistlip," and"My Teen Romantic Comedy SNAFU" (a new lead-managedanime) also have strong showings

Fiscal Year ended Fiscal Year ended
March 2013
March 2014

Title Rollouts

DOKI DOKI! PRETTY CURE!

MUSICAL THE PRINCE OF TENNIS
Performances July – September 2013

©TOEI ANIMATION. ALL RIGHTS RESERVED ©TAKESHI KONOMI／SHUEISHA,NAS,THE NEW PRINCE OF TENNIS PROJECT©TAKESHI KONOMI／SHUEISHA,MUSICAL THE PRINCE OF TENNIS PRODUCTION COMMITTEEStage Yowamushi Pedal
Performances in March 2014

©Wataru Watanabe（Akitashoten）2008©Wataru Watanabe（Akitashoten）2008／
MarvelousAQL，Toho，DXL CREATION

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

vistlip©MarvelousAQL

19

Audio & Visual BusinessInitiatives for Fiscal Year Ending March 2015

● Keep a focus on the core "PRETTY CURE" series and"MUSICAL THE PRINCE OF TENNIS"● And develop a third pillar, "Stage Yowamushi
Pedal," for new hit content● Promising new anime "Tokyo Ghoul" and"Bakumatsu Rock"● Also put efforts into live entertainment, including"Musical HAKUOKI" and "Stage K"

Net Sales (Unit: million yen)
2015年3月期（予）FY
ending March 2015 (forecast)
FY
ended March 20142014年3月期

Title Rollouts
HAPPINESSCHARGE PRETTY CURE!

Bakumatsu RockPopular broadcast, Sunday mornings at 8:30,
on Asahi Broadcasting Corporation (ABC) andTV Asahi affiliated stations

Broadcast scheduled to start in July 2014

FirstHalf
上期

Second下期 Half

FullYear
通期

Segment Income (Unit: million yen)921 920

1,000©TOEI ANIMATION. ALL RIGHTS RESERVEDTokyo Ghoul

750©2014 MarvelousAQL Inc./Bakumatsu Rock Production Committee

571 580

Stage K
Performances scheduled in August 2014

Broadcast scheduled to start in July 2014500

350 340250

0First Half

©Sui Ishida/Shueisha,Tokyo Ghoul Production Committee©GoRA・GoHands/k-project©GoRA・GoHands/stage k-project

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

Second Half

Full Year

20

Company Direction

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

21

New Company Name

Birth of a New Marvelous– 2nd Stage Start –MarvelousAQL Inc. will change its name to Marvelous Inc. on July 1, 2014 tomark the start of a new chapter for the company.

Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

22Company Review Since Management IntegrationGame industry undergoes major changes spurred by
the diffusion of smartphones
Utilizing our strengths as a comprehensive entertainment
provider, achieved an annual growth of approx. 20%
Revenues and profits up due to prudent decisions incore fields (operating income doubles)
Business scale undergoes steady expansion throughthe strengthening of classic titles and creation of new IP
in all three business segments
Three-company integration proceeding as planned;
foundation built for a leap forward
Through integration and completion of the growth
foundation, we are moving toward a system where wecan make maximum use of our historical advantages
and business model and take aggressive strides
towards a great leap forward
Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

23

Company Advantages and Business Model
A comprehensive entertainment company expanding
its business over a broad area
Delivering diverse entertainment content in all business segments on a variety of devices

Strategy×

Multi-content×Multi-use

Rich content library
MAQLStrategy

Advantages

Creative power for new projects(global solutions)

Multi-device

Bringing content to growth markets
Expanding hit creations throughhorizontal development
Tailoring solutions to rapidly changing
and diversifying devices

Expanding the 3 businesses by taking the strengths of eachand applying them across all
Expandability

Online Game Business

Consumer Game Business

Audio & Visual Business

For PCs/For mobile

Home-use game machines/
Amusement machines

Audio & Visual production/
Stage production

A business model that nurtures shared qualities forhigh profitability at limited risk
Diversified profit sources

Extending the profit horizon(multiple opportunities with content)
Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

(long-term opportunities through content)24

Progress Since Management Integration and Future Direction
Leveraging strengths in "creating and developing powerful IPs" as a"comprehensive entertainment company"
From integration, a great leap forward to the creation of higher added value

Net sales ¥14.4 billion
Operating income ¥1.4 billion
Profit ratio

41% increase¥20.3 billion

108% increase¥3.0 billion

Up 4.8%

14.8%

10.0%

¥6.1billion¥5.1 ¥3.2billion billion

FY endedMarch 2012
(simple sum)

¥8.9billion

Progress fromintegration¥7.6 ¥3.8billion billion

FY ended
March 2014
Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

25

Dividend Policy, Dividend Forecast

Fiscal Year ending March 2015:
Planning 15 yen per year in line with dividend policy
20〔1株あたり配当金の推移（円）〕Annual Dividends
年間配当Commemorative dividends
記念配当Ordinary dividends
普通配当1513.00

12.50
0.50

15.00

105

6.05
0.80

13.00

12.00

15.00

5.25
0Payoutratio

Fiscal Year ended
March 2012

Fiscal Year ended
March 2013

Fiscal Year endedMarch 2014

Fiscal Year ending
March 2015
(forecast)

5.6%

34.8%

36.9%

35.3%

Dividend Policy
It is the Company's basic
policy to pay a continualand stable cash dividend
at a target payout ratio of
30% or more while
securing the internal
reserves necessary for
future business expansion
and reinforcement of theCompany's financialposition.

* Values for Fiscal Year ended March 2013 and later are stated in consideration of
the 100:1 stock split executed by the Company effective October 1, 2013.
Copyright (c) 2014 MarvelousAQL, Inc. All rights reserved.

26

Thank you for your kind attention.
Inquiries
Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL: http://www.maql.co.jp

This document contains forward-looking statements which are based on information currently available tothe 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 MarvelousAQL, Inc. All rights reserved.

27