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

Marvelous Inc.

Fiscal Year Ending March 31, 2017
First Half

Results Briefing
Materials
October 31, 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 themacroeconomic environment and industry trends relevant to the Company. Therefore, theseforward-looking statements are made subject to certain risks and uncertainties which could cause
results including actual business performance to differ materially from those presented.

1Contents

Fiscal Year Ending March 2017, First-Half Results Summary

Segment Results

Fiscal Year Ending March 2017, Full-Year Business Forecast

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

2

Fiscal Year Ending March 2017,
First-Half Results Summary

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

3

Earnings Highlights (Statement of Income) Revenues and income decreased compared with the year-earlier
period mainly due to lower sales in online game business.
(Unit: million yen)
1H FY ended March 2016

1H FY ending March 2017

ActualActualProfit ratio

YOY change

Profit ratio(Amount)(%)

Net sales

16,447-

12,999--3,44879.0%

Cost of sales

6,212-

6,105

-

-106

98.3%

SGA expenses

7,393-

5,575--1,81875.4%

1,806-

1,204-

-601

66.7%

Operating income

2,841

17.3%

1,317

10.1%

-1,523

46.4%

Non-operating income/losses

-47

-

-262-

-215

-

Ordinary income

2,793

17.0%

1,055

8.1%

-1,73837.8%

Extraordinary income/losses

-54

-

22-

77-

Income taxes

828-

278

-

-550

33.6%

Profit attributable toowners of parent

1,910

11.6%

799

6.1%

-1,111

41.8%Thereof advertisingexpenses

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

4

Segment Results(Unit: million yen)
1H FY ended
March 2016

1H FY ending
March 2017

ActualActual

YOY change(Amount)

(%)

POINT

● Online Game Business• Main tiles marked sales
declines• New titles underperformed
Development terminated forsome titles and termination
charges recognized●Online GameBusiness

10,608

7,248-3,36068.3%●ConsumerGame Business

3,741

3,512-228

93.9%●Audio & VisualBusiness

2,101

2,249

148

107.1%

Total

16,447

12,999-3,448

79.0%●Online GameBusiness

2,276956-1,32042.0%●ConsumerGame Business

590359-231

60.8%●Audio & VisualBusiness576599

22104.0%

Total

3,444

1,915-1,528

55.6%● Audio & Visual Business

Adjustments & eliminations-602-597

599.0%

Operating Income Total

2,841

1,317-1,523

46.4%• Favorable performance ofestablished series and newcontents

Net Sales

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

● Consumer Game Business• Lower sales during thetransition period for the
introduction of new-type AM
machines, and cost burden
from the changeover to thenew machines5Development of Net Sales and Operating Income(Quarterly)(Unit: million yen)
2,500

10,000Net sales
売上高

Operating
営業利益 income

8,233

8,402
8,045

7,781

8,000

6,629

6,820

6,795
1,486

6,203

1,464

1,446

Net Sales

1,376
4,758

1,500

1,130
1,000

4,000

793638655679

Operating Income

1,475

6,000

2,000

7,591

500

2,000

00
1Q

2Q

3Q

FY ended
March 2015
2015年3月期

4Q

1Q

2Q

3Q

2016年3月期
FY ended
March 2016

4Q

1Q

2Q

FY ending
2017年3月期
March 2017

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

6

Sales Structure by Segment (Quarterly)
9,000

8,233

■Audio & Visual Business
8,000

8,045

■Consumer Game Business■Online Game Business

7,000

6,629
1,019

6,000

(15.4%)

1,532

6,820

(18.6%)

912(11.3%)

1,189(14.2%)

825
4,000(17.3%)

3,000(26.9%)

862

1,655

2,152

6,795

1,884

(20.6%)(20.6%)

6,203

2,086
(24.8%)

1,303
2,177

945

(28.0%)(15.2%)

1,061

4,758

7,591

(11.1%)(22.9%)
5,000

7,781

1,564

1,322(19.4%)

Unit: million yen (percent of sales)

8,402

1,625

(19.2%)(21.4%)(15.6%)(32.5%)

1,542

1,970

(24.9%)(29.0%)

1,278
5,479
4,443

2,000

3,461
2,656
1,000

0

4,818

(68.1%)

5,129(61.0%)(58.5%)(65.2%)

4,743(61.0%)

4,403(58.0%)(52.2%)

3,717

3,530

(59.9%)(51.9%)(55.8%)

1Q

2Q

3Q

Fiscal Year
ended March 2015
2015年3月期

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

4Q

1Q

2Q

3Q

2016年3月期
Fiscal Year
ended March 2016

4Q

1Q
2Q
Fiscal Year ending
2017年3月期
March 20177Balance Sheet (Summary) Current assets lower mainly due to reduced cash and deposits after income tax
payment and dividend payment.
 Higher noncurrent assets from investment in new amusement cabinets.
(Unit: million yen)

End ofMarch 2016

End ofSeptember 2016

ChangeCurrent assets (total)

16,204

13,954-2,250Noncurrent assets (total)

4,165

5,278

1,113

20,37019,233-1,136

6,421

6,083-337

Noncurrent liabilities (total)

27

63

35

Total Liabilities

6,448

6,147-301

Net Assets (total)

13,921

13,085-835

Total Assets
Current liabilities (total)

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

8

Segment Results

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

9

Online Game Business:
FY Ending March 2017 First-Half Progress Status

Logres of Swords and Sorcery:
Goddess of Ancient(native app)

©Marvelous Inc. Aiming Inc.

For "Logres of Swords and Sorcery:
Goddess of Ancient," implemented
collaboration with popular IP such as"BLEACH," "Attack on Titan," and"AJIN: Demi-Human"
Copyright (c) 2016 Marvelous Inc. All rights reserved.

战斗吧 蘑菇君(Logres of Swords and Sorcery:
Goddess of Ancient)©Marvelous Inc. Aiming Inc.
©SkyMoons.com.

"Logres of Swords and Sorcery:
Goddess of Ancient" launched in China
through a local publisher.

10Online Game Business:
FY Ending March 2017 First-Half Progress Status
1H Results for FY Ending March 2017•

Sales decreased compared with the year earlier after top performance of"Logres of Swords and Sorcery" is ebbing off.

•Service terminated for some titles, with lower earnings due to charges taken
for terminated developments.

12,000(Unit: million yen)

3,000

10,608
2,276
8,000

2,000

7,248
6,117
1,117

956

4,000

01H
Fiscal Year2015年3月期
ended March
第2Q累計
2015

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

1H
Fiscal Year2017年3月期
ending March2017
第2Q累計

1H
Fiscal Year2016年3月期
ended March
第2Q累計
2016

1,0000Segment income11Online Game Business:
Initiatives Starting in 3Q of FY Ending March 2017■Higher sales and earnings from commemorative events,etc., on third anniversary of rebounding "Logres of
Swords and Sorcery: Goddess of Ancient" forthcomingin December■Strong earnings improvement compared with first half
after culling of underperforming titles and titles aborted
during development■Focused development of new titles for release at fiscal
year-end and next fiscal year

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

12

Online Game Business:
Initiatives Starting in 3Q of FY Ending March 2017
Joint development and operation with DMM GAMES×

New game for PC browser “Tenka Touitsu Project”

Scheduled forlaunch inFebruary 2017

©Marvelous Inc. / ©DMM GAMES

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

13

Online Game Business:
Initiatives Starting in 3Q of FY Ending March 2017
“Senbura” project jointly plannedby three companies

××

Smartphone game app“Sengoku Night Blood”

Scheduled forlaunch in 2017(next fiscal year)©Marvelous Inc. / KADOKAWA / IDEA FACTORY

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

Large-scale joint project

××Mr. Toshl (X JAPAN)

Collaborative title for smartphone“Project Chronos”© Marvelous Inc. / Fuji Games, Inc.

Scheduled forlaunch in thesummer of 201714

Consumer Game Business:
FY Ending March 2017 First-Half Progress Status
BOKUJO MONOGATARIMITTSU NO SATO NO
TAISETSU NA TOMODACHI(3DS)

Dragon Quest:
Monster Battle Scanner(Amusement)

Pokémon Ga-Olé(Amusement)©2016 Marvelous Inc. All Rights Reserved.

Released June 23
UPPERS(PS Vita)©2016 ARMOR PROJECT/BIRD STUDIO/Marvelous/
SQUARE ENIX All Rights Reserved.

Launched June 23©2016 Pokémon. ©1995-2016 Nintendo/Creatures Inc. /GAME FREAK inc.
Developed by T-ARTS and MARV
Pokémon is a registered trademark of Nintendo, Creatures, and GAME FREAK.

Launched July 7©2016 Marvelous Inc.

Released July 14
Copyright (c) 2016 Marvelous Inc. All rights reserved.

15

Consumer Game Business:
FY Ending March 2017 First-Half Progress Status
1H Results for FY Ending March 2017
• Despite cost burden from new title launches, performancedeveloping to plan.
4,000(Unit: million yen)

800

3,741
3,512

3,430
590

3,000600

411
359

2,000200

1,0000400

1H
Fiscal Year2015年3月期
ended March
第2Q累計
2015

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

1H
Fiscal Year2017年3月期
ending March
2017
第2Q累計

1H
Fiscal Year2016年3月期
ended March
第2Q累計
2016

0Segment income
16Consumer Game Business:
Initiatives Starting in 3Q of FY Ending March 2017

■Maximizing sales and earnings from two newtitles with domestic sales launches in secondhalf■Full-scale new title introductions starting insecond half also at overseas subsidiaries■Amusement machines with three title
line-up to be strengthened throughrespective IP collaboration andadvertising

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

17

Consumer Game Business:
Initiatives Starting in 3Q of FY Ending March 2017
First new production in the series in three years

Most recent titles of mainstay series

Fate/EXTELLASENRAN KAGURA(PS4/PS Vita)

PEACH BEACH SPLASH(PS4)

Scheduled forreleaseScheduled forreleaseNovember 10,
2016

March 16,2017

©TYPE-MOON ©2016 Marvelous Inc.

Strong pre-orders
Sales launches decided also forNorth America and Europe
Copyright (c) 2016 Marvelous Inc. All rights reserved.

©2016 Marvelous Inc.

Initiatives also in overseas
markets in Europe, US, andAsian countries, etc.
18Consumer Game Business:
Initiatives Starting in 3Q of FY Ending March 2017
Marvelous USA

Corpse Party (3DS)(Licenser : 5pb.)

Released
October 25,
2016©Team GrisGris / MAGES./5pb. Licensed to and published by
XSEED Games / Marvelous USA, Inc. All Rights Reserved.

Fate/EXTELLA: The Umbral Star
(PS4/PS vita)

STORY OF SEASONS:
Trio of Towns (3DS)

Scheduledfor release2017

Scheduledfor release
2017©TYPE-MOON ©2016 Marvelous Inc. Licensed to and publishedby XSEED Games / Marvelous USA, Inc. All Rights Reserved.

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

©2017 Marvelous Inc. All Rights Reserved. Licensed to andpublished by XSEED Games / Marvelous USA, Inc.

19

Audio & Visual Business:
FY Ending March 2017 First-Half Progress Status
QUALIDEA CODE

©Speakeasy・Marvelous/QUALIDEA Production Committee

Broadcasting in July - September
Sales launch of Blu-ray and DVD
formats in September

Musical HAKUOKIHAKU-MYU LIVE 2Ensemble Stars! On Stage

Touken Ranbu the Stage©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT©Touken Ranbu the Stage Production Committee

Performances in June

Performances in May

ULTRA MUSICAL Samurai Jam-Bakumatsu RockThe Arrival of the Black Ships©IDEA FACTORY•DESIGN FACTORY/Musical HAKUOKI Project

Performances in August
Copyright (c) 2016 Marvelous Inc. All rights reserved.

©2014 Marvelous Inc./BakumatsuRock Production Committee©2014 Marvelous Inc./ULTRA MUSICAL BakumatsuRock Production Committee

Performances inAugust - September©Touken Ranbu the Stage Production Committee

Sales of Blu-ray Disc launched inSeptember reached overall top position inOricon Weekly BD Ranking (September 19)

20

Audio & Visual Business:
FY Ending March 2017 First-Half Progress Status
1H Results for FY Ending March 2017
• Strong performance of established series and new titles.
(Unit: million yen)

2,500

1,000

2,249
2,101
2,000

800

1,844
576

1,500

599

600

425
1,000

400

500

20000
1H Fiscal Year
ended March
2015

1H Fiscal Year
ended March2016

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

1H Fiscal Yearending March
2017

Segment income21

Audio & Visual Business:
Initiatives Starting in 3Q of FY Ending March 2017

■Two hugely popular titles “Touken Ranbu theStage” and “Ensemble Stars! On Stage” to be
performed on a larger scale also in second half
■Broadcasts continuing of popular TV anime
production “TOUKEN RANBU HANAMARU”■Proactive development also for secondary uses
centered on video disseminations for theChinese market■Steady conditions surrounding also otheranime and stage series productions
Copyright (c) 2016 Marvelous Inc. All rights reserved.

22

Audio & Visual Business:
Initiatives Starting in 3Q of FY Ending March 2017
“Ensemble Stars! On Stage”

Touken Ranbu the Stage～Take your marks!～

RepeatperformancesSequels©Touken Ranbu the Stage Production Committee

Repeat performances of “Touken Ranbu theStage” decided for December after highly
popular performances in May©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT

Sequel performances of “Ensemble Stars!
On Stage” decided for January after highly
popular performances in June

©Touken Ranbu the Stage Production Committee©2016 TOUKEN RANBU HANAMARU Project

TOUKEN RANBU HANAMARU
TV broadcasting started from October
Copyright (c) 2016 Marvelous Inc. All rights reserved.

©2016 Happy Elements K.K/Ensemble Stars! STAGE PROJECT

Sales launch on October 13 of PlayStationⓇVR contents
featuring VR live video and backstage footage
23

Audio & Visual Business:
Initiatives Starting in 3Q of FY Ending March 2017
Witchy Pretty Cure! the Movie©2016 Witchy Pretty Cure! the Movie Production Committee

Stage [Yowamushi Pedal]"Another New Team, Beginning"MUSICAL THE PRINCE OF TENNIS
3rd Season SEIGAKU vs HYOTEI©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECTMUSICAL AOHARU TETSUDO２～with love from Sinetsu～©Musical AOHARU TETSUDO Project©Wataru Watanabe (Akitashoten) 2008／Yowamushi Pedal GR Film Partners 2014
©Wataru Watanabe (Akitashoten)／Marvelous, TOHO, TMS ENTERTAINMENT

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

24

Fiscal Year Ending March 2017,
Full-Year Business Forecast

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

25

Fiscal Year Ending March 2017,
Full-Year Business Forecast
 Original results projections remain intact.
 Aiming at attainment of full-term targets by leveraging the comprehensive
power of portfolio management.
FY ended March 2016
ActualIncome ratio

FY ending March 2017
Forecast

YOY change

Income ratio (Amount)(%)

Net Sales

31,820－34,000－2,179106.9%

Operating Income

5,418

17.0%

6,000

17.6%

581

110.7%

Ordinary Income

5,228

16.4%

5,850

17.2%

621

111.9%

Profit attributable toowners of parent

3,602

11.3%

4,150

12.2%

547

115.2%

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

26

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 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 business performance to differ materially from those presented.

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

27