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

Results Briefing Materials

For the Fiscal Year Ended March 31, 2018 (FY2018)
May 10, 2018

Contents

 Results Summary for FY2018
 Overview by Segment
 Forecast for FY2019

Copyright (c) 2018 Marvelous Inc. All rights reserved.

1

Results Summary for FY2018

Copyright (c) 2018 Marvelous Inc. All rights reserved.

2

Income Statement Highlights
 The Consumer Game Business and the Audio & Visual Business performed well but theOnline Game Business slumped, resulting in lower sales and profits year over year
(Unit: million yen)
FY2018FY2017
ActualActualProfit ratio

YoY change
Profit ratio

Amount%Net sales

29,387-25,291--4,096

86.1%

Cost of sales

13,114-

11,035--2,078

84.2%

SG&A expenses

10,519

-

9,108

-

-1,410

86.6%

1,951

-

1,895

-

-56

97.1%

Operating profit

5,754

19.6%

5,147

20.4%

-607

89.4%

Non-operating
income/losses

55-

(41)

--97-

Ordinary profit

5,810

19.8%

5,105

20.2%

-704

87.9%

Extraordinary
income/losses

(17)

-(71)

--53

-

Income taxes

1,626-

1,520-

-106

93.5%

Profit attributable toowners of parent

4,165

14.2%

3,513

13.9%

-651

84.4%

Of which advertisingexpenses

Copyright (c) 2018 Marvelous Inc. All rights reserved.

3

Segment Results(Unit: million yen)
FY2017FY2018ActualActualHighlights

YoY change
Amount%◆ Online Game Business♦ Online Game

14,75010,034-4,716

68.0%• Lower sales of flagship titles♦ Consumer Game

9,067

8,891-175

98.1%• Lower contribution from new titles♦ Audio & Visual

5,607

6,396

789

114.1%◆ Consumer Game Business

29,38725,291-4,096

86.1%♦ Online Game

3,271

1,390-1,881

42.5%♦ Consumer Game

2,042

2,969927

145.4%• Strong showing from a select lineup• Overseas subsidiaries continued topost strong sales• The regular amusement series andnew business performed well

♦ Audio & Visual

1,603

2,052

448

128.0%

6,917

6,411-505

92.7%(1,163)(1,264)-101108.7%Net sales

TotalSegment
profitTotal
Adjustments & eliminations
Operating profit total

Copyright (c) 2018 Marvelous Inc. All rights reserved.

5,754

5,147-607

89.4%◆ Audio & Visual Business• Successful stage performances
mainly from flagship series• Favorable secondary-use revenue

4Quarterly Sales by Segment
12,000■Audio & Visual Business

Unit: million yen (percentage to total sales)■Consumer Game Business
10,000■Online Game Business

8,000
1,532

912
(11.3%)

1,189(14.2%)(18.6%)

1,019

6,000

4,000

(15.4%)

825(17.3%)

2,152

1,322

1,655

(19.4%)

1,884(20.6%)

1,061(22.9%)

2,086(24.8%)

1,459

862

(11.1%)(16.9%)

1,564

1,897

2,115

(20.6%)(24.5%)(26.8%)

945

2,177(28.0%)

1,625(21.4%)(15.6%)(32.5%)(15.2%)

1,303(19.2%)

2,986

1,798(34.6%)

1,542

1,970

2,568(24.9%)(29.0%)(33.1%)

1,278(26.9%)

2,000
2,656(55.8%)

0

1Q

3,461

4,443
(65.2%)

4,818(58.5%)

5,479(68.1%)

profit(61.0%)

4,743(61.0%)

4,403(58.0%)

2Q

3Q

4Q

1Q

2Q

3Q

4Q

(27.8%)

3,717(59.9%)

1Q

FY20163,530(51.9%)

4,207(48.7%)

2Q

3,295(42.5%)

3Q

4Q

2,341
2,159

3,051(38.6%)(36.7%)(34.8%)

2,724

2,736(36.2%)(42.7%)(34.6%)

2Q

3Q4Q

2,330

2,243(48.3%)

1Q

FY2017(20.6%)(29.0%)(24.1%)

1,338(52.2%)

FY2015Net sales
Consolidated Operating

5,129

1,164

1,318

FY2018

4,758

6,629

6,820

8,233

8,045

8,402

7,781

7,591

6,203

6,795

8,637

7,751

4,822

6,192

6,375

7,901

655

793

1,475

1,486

1,376

1,464

1,130

1,446

638

679

2,503

1,932

708

1,055

1,197

2,184

Copyright (c) 2018 Marvelous Inc. All rights reserved.

5Balance Sheet Summary(Unit: million yen)

End-March
2017

End-March2018

ChangeCurrent assets (total)19,285

21,412

2,127

Non-current assets (total)

4,943

4,075-867

24,22825,488

1,260

7,626

7,024-602

62

50

-12

Total liabilities

7,688

7,074-614

Total net assets

16,53918,414

1,874

Total assets
Current liabilities (total)
Non-current liabilities (total)

Copyright (c) 2018 Marvelous Inc. All rights reserved.

6

Overview by Segment

Copyright (c) 2018 Marvelous Inc. All rights reserved.

7

Online Game Business
Title Performance for FY2018
 Launched “Sengoku Night Blood,” “OSOMATSU SAN YOKUBARI! NEET ISLAND,” ”SHINOBI MASTER -SENRAN KAGURA
NEW LINK-,” “ORDINAL STRATA” and “Senjushi”
 Sales from “Logres of Swords and Sorcery: Goddess of Ancient” declined year on year despite of strong performanceat the fourth-anniversary events
 Terminated services for some underperforming titles; discontinued development of one unreleased new title; andwrote down development costs in a lump sumTitle Rollouts

OSOMATSU SAN YOKUBARI! NEET ISLAND

Sengoku Night Blood(native app)(native app)©2017 Marvelous Inc. / KADOKAWA / IDEA FACTORYSHINOBI MASTER-SENRAN KAGURA NEW LINK(native app)

Launched
on May 29,
2017

ORDINAL STRATA

Launchedon Sep. 19,
2017©Fujio Akatsuka, OSOMATSU SAN Production Committee©D-techno / Marvelous Inc.

Senjushi

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

Launchedon Jan. 9,2018© Fuji Games, Inc. / Marvelous Inc.

Copyright (c) 2018 Marvelous Inc. All rights reserved.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

(native app)

Launched
on Mar.
22, 2018©LINE Corporation ／ Marvelous Inc.

Launchedon Nov. 29,
2017

Launched
on Dec.
17, 2013©Marvelous Inc. Aiming Inc.

8Online Game BusinessResults for FY2018
 Sales and profits down year on year because of a decline in sales from the flagship titles
and limited contribution from new titles(Unit: million yen)
7,500

25,00019,75520,00015,37915,000

3,815

4,182

6,000

14,7503,271

10,000

5,000

8,877

4,500

10,034

1,390742

3,000

1,500

00

FY20142014年3月期

FY20152015年3月期

FY20162016年3月期
Net sales

Copyright (c) 2018 Marvelous Inc. All rights reserved.

FY20172017年3月期

FY20182018年3月期

Segment profit

9Consumer Game Business
Title Performance for FY2018
 Released “Fate/EXTELLA” (Nintendo Switch), “Shinobi Reflation -SENRAN KAGURA-”(Nintendo Switch download sale), “BOKUJO MONOGATARI FUTAGO NO MURA +”(Nintendo 3DS) and “SENRAN KAGURA Burst Re:Newal” (PlayStation®4)
 Overseas, our flagship series posted strong sales in North America, Europe and elsewhere For Amusement, “Pokémon Ga-Olé and the new business “TRYPOD” both became hits
Title Rollouts
Shinobi Reflation- SENRAN KAGURA (Nintendo Switch)

BOKUJO MONOGATARIFUTAGO NO MURA +(Nintendo 3DS)

Releasedon Nov. 24,
2017©2017 Marvelous Inc./HONEY PARADE GAMES Inc.

Copyright (c) 2018 Marvelous Inc. All rights reserved.

Releasedon Dec. 14,
2017©2017 Marvelous Inc. All Rights Reserved.

SENRAN KAGURA
Burst Re:Newal(PlayStation®4)

TRYPOD(Amusement)

Operation
started inNov. 2017

Releasedon Feb. 22,
2018©2018 Marvelous Inc./HONEY PARADE GAMES Inc.

©Marvelous Inc.
* Patent application pending.

10Consumer Game BusinessResults for FY2018
 Generated temporary income through sale of software assets etc.
 Sales fell slightly in the absence of major titles but profits rose from strong performance(Unit: million yen)of each title10,000

7,500

9,067
7,630

7,544

4,000

8,891
2,969

3,200

6,376
2,268

2,400

2,042

5,000

1,600

1,006

2,500

800

502

00

FY20142014年3月期

FY20152015年3月期

FY20162016年3月期
Net sales

Copyright (c) 2018 Marvelous Inc. All rights reserved.

FY20172017年3月期

FY20182018年3月期

Segment profit

11

Audio & Visual Business
Title Performance for FY2018
 New performances of flagship series “Touken Ranbu the Stage” and “Ensemble Stars! On Stage” were highly
successful
New performances of the regular series such as “MUSICAL THE PRINCE OF TENNIS” and “Musical HAKUOKI” werestaged
 New stage productions “JOKER GAME THE STAGE,” “B-PROJECT on STAGE OVER the WAVE!” and “Stage MobPsycho100” also proved popular TV anime broadcast of “SENGOKU NIGHT BLOOD,” “TOUKEN RANBU HANAMARU Season2” and “Fate/EXTRA Last
Encore” Launched broadcasting of a new TV Anime of PRECURE series“ HUG! Pretty Cure ” in February
 Strong secondary-use revenue both in the anime and stage performance categories

Title Rollouts
Touken Ranbu the Stage

Anime production
TOUKEN RANBU HANAMARU Season2
Anime production“SENGOKU NIGHT BLOOD”

Ensemble Stars! On Stage～To the shining future～

Publicperformancesin Dec. 2017

Broadcast fromOct. to Dec. 2017
Volume 1 of
DVD/BD launchedon Dec. 20

Publicperformances
in Jan. 2018
©Touken Ranbu the Stage Production Committee© 2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECT

Copyright (c) 2018 Marvelous Inc. All rights reserved.

©2017 Marvelous Inc., KADOKAWA, IDEA FACTORY/SENBURA PRODUCTION COMMITTEEBroadcast fromJan. to Mar. 2018
Volume 1 of
DVD/BD launchedon Mar. 14©2018 Nitroplus・DMM GAMES TOUKEN RANBU HANAMARU Season2 Project12Audio & Visual BusinessResults for FY2018
 Sales and profits up year on year because flagship series continued to contribute toearnings and the secondary-use revenue remained favorable(Unit: million yen)
8,000

3,000

6,396
5,607

6,000

4,699
4,000

3,825

4,527

2,400

2,052
1,800

1,603

1,308
1,089

921

1,200

2,000600

0FY20142014年3月期

FY20152015年3月期
2015年3月期

FY20162016年3月期
2016年3月期
Net sales

Copyright (c) 2018 Marvelous Inc. All rights reserved.

2017年3月期
FY20172017年3月期

FY20182018年3月期

0Segment profit

13Forecast for FY2019

Copyright (c) 2018 Marvelous Inc. All rights reserved.

14

Forecast for FY2019(Unit: million yen)

FY2018ActualFY2019

Profit ratio

ForecastChange

Profit ratio

Amount%Net sales

25,291-25,000--291

98.8%

Operating profit

5,147

20.4%

4,500

18.0%

-647

87.4%

Ordinary profit

5,105

20.2%

4,500

18.0%

-605

88.1%

Profit attributable toowners of parent

3,513

13.9%

2,980

11.9%

-533

84.8%

Copyright (c) 2018 Marvelous Inc. All rights reserved.

15

Online Game Business:
Initiatives starting in FY2019
 Focus on cultivating titles released in FY2018 and maintaining sales of existing titles
SHINOBI MASTER-SENRAN KAGURA NEW LINK-Sengoku Night Blood(native app)(native app)

Launched
on May 29,
2017

Launchedon Nov. 29,
2017©2017 Marvelous Inc. / KADOKAWA / IDEA FACTORY

ORDINAL STRATA(native app)

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Senjushi(native app)

Launchedon Jan. 9,
2018

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

Launched
on Mar.
22, 2018© Fuji Games, Inc. / Marvelous Inc.

©Marvelous Inc. Aiming Inc.

©LINE Corporation ／ Marvelous Inc.

Copyright (c) 2018 Marvelous Inc. All rights reserved.

16

Consumer Game Business:
Initiatives starting in FY2019
 Planning to launch the latest works of popular series in Japan Overseas, porting our consumer titles for Steam Promoting acquisitions including indie games at home and abroad Dedicated development of commissioned titles from BANDAI NAMCO Entertainment underway
 Preparing the latest Amusement series
Fate/EXTELLA LINKPEACH BALLSENRAN KAGURA(PlayStation®4/PlayStation®Vita)(Nintendo Switch)
To bereleased onJun. 7, 2018

ⒸTYPE-MOON Ⓒ2018 Marvelous Inc.

Release dateto bedetermined©2018 Marvelous Inc./HONEY PARADE GAMES Inc.

Bullet Witch

GOD EATER 3(Windows PC)(PlayStation®4/Steam)

未定 Released on

Release date
to be determined(commissionbaseddevelopment)

Apr. 26, 2018
(Japan time)worldwide©2018 Marvelous Inc. (Licensed to and published by XSEEDGames / Marvelous USA, Inc.)

Copyright (c) 2018 Marvelous Inc. All rights reserved.

©BANDAI NAMCO Entertainment Inc.

17

Audio & Visual BusinessInitiatives starting in FY2019
 Developing a series of powerful IPs for both anime and stage
 Developing all-new stages
Anime production
HUG! Pretty Cure

Anime production
The Thousand Masketeers

Anime production
Tokyo Ghoul :reMusical HAKUOKITV anime
Broadcastinglaunched inApr. 2018

TV animeBroadcastinglaunched inFeb. 2018
©Toei Animation. All Rights Reserved© Sui Ishida/Shueisha and Tokyo Ghoul the Stage
Production Committee

TV anime
Broadcastingscheduled forJul. 2018
© Anime Senjushi Production Committee

Publicperformancesin Apr. andMay 2018
© IDEA FACTORY•DESIGN FACTORY/HAKUOKI Project
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～

JOKER GAME THE STAGE IIMusical AOHARU TETSUDO 3

Publicperformancesin May 2018
©AOHARU ©Musical “AOHARU TETSUDO” Production Committee

MUSICAL THE PRINCE OF TENNIS
15th Anniversary Concert
Dream Live 2018

Publicperformancesin May 2018©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI／2015 MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2018 Marvelous Inc. All rights reserved.

Touken Ranbu the Stage

Publicperformancesscheduled forJun. 2018© Koji Yanagi, KADOKAWA / JOKER GAME ANIMATION PROJECT© JOKER GAME THE STAGE PROJECT

Publicperformancesscheduled for
Jun.-Jul. 2018
© Touken Ranbu the Stage Production Committee18

Looking to the Next Two Fiscal Years
Online Game Business- Invite prominent outside producers and enhance production- Take on the challenge of creating non-game applications- Strengthen business activities in Asia, mainly in China
Consumer Game Business- Jointly develop new, large-scale titles for home-use games withmajor publishers for the global market- Further expand business domains by taking on the challenge ofcontinuously creating new opportunities in the amusement business
Audio & Visual Business- Acquire/provide high-quality IPs- Further increase secondary-use revenue- Develop overseas markets for 2.5 dimensional stage and musicalCompany-wide- Cultivate talent and revise remuneration systems
Copyright (c) 2018 Marvelous Inc. All rights reserved.

19

Dividend Forecast / Dividend Policy
 FY2018: Ordinary dividend of ¥30 per share and additional dividend of ¥3 per share commemorating
the 20th founding anniversary of the Company for a total annual dividend of ¥33 (finalized)
 FY2019: Ordinary dividend of ¥33 per share (planned)■ Ordinary dividend■ Commemorative dividend(Unit: Yen)

33

30

30

30

30

FY2015FY2016FY2017FY2018

49.1%

43.7%

37.3%

48.6%

33330

33

20
20

Dividendpayout
ratio

Copyright (c) 2018 Marvelous Inc. All rights reserved.

FY2019 (forecast)

Dividend policy
As a fundamental policy,
the Company distributes
sustained and stabledividends aiming at apayout ratio of at least 30%
while observing internalretention necessary for
future business growth andfor strengthening thefinancial structure of theCompany.

57.3%
20

Thank you very much for your attention.
Inquiries
Administration Division, Corporate Planning Department
TEL: +81-3-5769-7447
FAX: +81-3-5769-7448
URL:https://corp.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) 2018 Marvelous Inc. All rights reserved.

21