Stock Code: 7844
(First Section of Tokyo StockExchange)

Marvelous Inc.

Fiscal Year Ending March 31, 2016
First Quarter

Results Briefing
Materials
July 31, 2015
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 materially fromthose presented.

Contents

Fiscal Year Ending March 2016, First Quarter Results Summary

Fiscal Year Ending March 2016, Full-Year Business Forecast

Segment Results

Copyright (c) 2015 Marvelous Inc. All rights reserved.

2

Fiscal Year Ending March 2016,
First Quarter Results Summary

Copyright (c) 2015 Marvelous Inc. All rights reserved.

Earnings Highlights
 The first quarter of fiscal year ending March 2016 marked net sales and operating income growth of169.1% and 209.9%, respectively, compared with the year-earlier period
 App games continue favorably, boosting the online game business compared with the year-earlier
period and driving overall results（単位：百万円）(Unit:million yen)

10,000Net sales

Operating income

Net Sales高上

6,000

4,758

1,500

1,000

業利 Income益Operating8,000

営

売8,0451,376

2,000655

4,000

500

2,000001Q
Fiscal Year2015年3月期
ended 第1Q
March 2015
Copyright (c) 2015 Marvelous Inc. All rights reserved.

1Q
Fiscal Year2016年3月期
ending第1Q
March 2016
4

Income Statement
 Strong growth in sales and earnings compared with the year-earlier period, even withhigher advertising expenses from stepped-up apps games promotion Remarkable earnings growth marking an income expansion of more than two-fold withenhanced profit margins(Unit: million yen)
1Q FY ended March 2015

Actual

YOY change

1Q FY ending March 2016

Profit ratio

ActualProfit ratio(Amount)(%)

Net sales

4,758-

8,045-

3,286

169.1%

Cost of sales

2,033-

2,835-

802

139.5%

SGA expenses

2,069-

3,832-

1,763

185.2%

338-

993-

655

293.7%

Operating income

655

13.8%

1,376

17.1%

720

209.9%

Non-operating
income/losses

-6-

60-

66-

Ordinary income

649

13.7%

1,436

17.9%

787

221.2%Extraordinary
income/losses-10--52--42-

Income taxes

215-391-176

181.8%

Profit attributable toowners of parent

424

8.9%

992

12.3%

567

233.9%

Thereof advertisingexpenses

Copyright (c) 2015 Marvelous Inc. All rights reserved.

5

Development of Net Sales and Operating Income (Quarterly) Attained highest-ever sales and earnings in any first quarter Sales approached peak level normally seen only in 4th quarter year-end period(Unit: million yen)
9,000

2,500

Net sales

Operating income

8,233

8,045

8,000
7,000

6,629

5,664

Net Sales5,175

1,475

1,486

5,080

1,376

4,758

5,000

1,500

4,410
4,000849

795

3,000

1,000845

793
655

Operating Income

6,000

2,000

6,820

515

2,000500

1,00000
1Q

2Q

3Q

FY ended March 2014

Copyright (c) 2015 Marvelous Inc. All rights reserved.

4Q

1Q

2Q

3Q

FY ended March 2015

4Q

1Q
FY endingMarch 2016

6Segment Results(Unit: million yen)
1Q FY ended 1Q FY ending
March 2016
March 2015
ActualActualPOINT

YOY change(Amount)(%)● Online Game Business• Continued favorable app games
result in strong earningsexpansion●Online GameBusiness

2,656

5,479

2,823206.3%●

Consumer GameBusiness

1,278

1,655

377

129.5%●

Audio & VisualBusiness82591286110.5%● Consumer Game Business

Total

4,758

8,045

3,286

169.1%• New title introductions lift sales
but costs are higher

Online GameBusiness

395

1,125730

284.8%

Consumer Game
●Business

298263-3488.3%

Audio & VisualBusiness

228

306

77

134.1%

Total

922

1,695

773

183.9%

Adjustments & eliminations-266-318-52

119.7%

Operating Income Total

655

1,376720

209.9%Net Sales●SegmentIncome●Copyright (c) 2015 Marvelous Inc. All rights reserved.

● Audio & Visual Business• In addition to stage performances
being highly popular, new anime
products also display favorable
start

7

Sales Structure by Segment (Quarterly) Top-priority online game business continues to post quarterly growth(Unit: million yen)

9,000
Unit: million yen (percent of sales)
8,000■Online Game Business

6,629

6,000

5,664
5,175

5,080

5,000
4,410
4,000

3,000

788
(17.9%)

1,677(38.0%)

1,073(20.7%)

850(15.0%)

1,532912(11.3%)

1,061(15.6%)

2,152(21.9%)(17.3%)(32.5%)

1,660(40.3%)(32.7%)

1,278(26.9%)
4,443
3,461

2,307

1,944(44.1%)

2,016(39.0%)(45.4%)

1Q

2Q

3Q

1,884

1,655
(20.6%)(22.9%)
4,758
825

2,086

(18.6%)

1,322(19.4%)

1,113
2,206
(38.9%)

6,820

1,019
(15.4%)

2,000

1,000

8,045

■Audio & Visual Business■Consumer Game Business

7,000

8,233

2,609
(46.1%)

2,656(55.8%)(52.2%)

4Q

1Q

2Q

(65.2%)

4,818(58.5%)

5,479(68.1%)

0Fiscal Year ended 2014

Fiscal Year ended March 2014
Copyright (c) 2015 Marvelous Inc. All rights reserved.

3Q

Fiscal Year ended 2015

Fiscal Year ended March 2015

4Q

1Q
Fiscal Yearending 20168

Balance Sheet (Summary) Reduced cash and deposits due to income tax and dividend payments and acquisition ofshare capital of G-MODE Corporation resulted in lower current assets
 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 ofJune 2015

ChangeCurrent assets (total)

18,624

16,325-2,298

Noncurrent assets (total)

3,414

4,626

1,212

22,03920,952-1,0868,535

7,764-771

52

42

-10

Total Liabilities

8,588

7,807-781

Net Assets (total)

13,45013,145-305

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

Copyright (c) 2015 Marvelous Inc. All rights reserved.

9

Fiscal Year Ending March 2016,
Full-Year Business Forecast

Copyright (c) 2015 Marvelous Inc. All rights reserved.

Fiscal Year Ending March 2016, Full-Year Business Forecast
Full YearNet SalesFY ending
March 2016

ActualForecastBased on further strengthening of businesssystems, plans call for net sales of ¥35 billion andoperating income of ¥6 billion, marking 30%-plus
growth from the year-earlier and double-digit gains
for the fourth consecutive year

Expecting increased full-year revenues and profits
in all segments.

YOY change(Amount)(%)●

Online GameBusiness

15,37923,0007,620

149.5%●

Consumer GameBusiness

6,376

7,200

823

112.9%

Online game business on track for more growthcontinuing from fiscal year ended March 2015.

Audio & Visual●Business4,699

Total

26,44135,0008,558

132.4%Development in Net Sales and(Unit: million yen)
Operating Income (Annual)

Online GameBusiness

3,815

5,550

1,734

145.5%Net sales

35,000Operating income(+32.4%)●Segment
IncomeFY ended
March 2015●

Consumer GameBusiness

4,800

100

102.1%

502

550

47109.5%

Audio & Visual●Business

1,089

1,100

10100.9%

Total

5,407

7,200

1,792

133.1%-995-1,200-204120.6%

26,441

20,330Operating Income

4,412

6,000

1,587

136.0%

Ordinary Income

4,583

6,000

1,416

130.9%

Profit attributable toowners of parent2,178

4,100

1,921

188.2%

Copyright (c) 2015 Marvelous Inc. All rights reserved.

(+36.0%)(+30.1%)(+15.6%)

17,579Adjustments & eliminations

6,000(percent change)

4,412(+46.8%)3,006(+29.0%)2,329

FY ended
March 2013

FY ended
March 2014

FY ended
March 2015

FY endingMarch 2016(forecast)11

Segment Results

Copyright (c) 2015 Marvelous Inc. All rights reserved.

Online Game Business:
FY Ending March 2016 Progress Status(Unit: million yen)
■Net sales ■Operating income

1Q Results for FY Ending March 2016
Net sales: Increase from favorable app games6,000

Profits:

5,000

Strong growth from enhanced profit margins

Title Performance

1,500

5,479
1,125

1,000

4,000

 “Logres of Swords and Sorcery: Goddess of Ancient”
continues to show strong performance
6 million downloads (cumulative) surpassed in April

3,000
2,000

 “Disney Magic Castle Dream Island,” aired in TV
commercial in June, surpassed 3 million downloads(cumulative)

750

2,656

500

3952501,000

 Existing PC and mobile browser games remain stable

0

1,250

1Q Fiscal Year
ended March 2015

1Q Fiscal Yearending March 2016

0〈Title Rollouts〉“Logres of Swords and Sorcery:
Goddess of Ancient”“Browser Sangokushi”“Ikki-Tousen Burst Fight”(native app)

(PC browser)(mobile browser)

Service launched in December 2013

Service launched in July 2009

Service launched in May 2012

©Marvelous Inc. Aiming Inc.

©Marvelous Inc.

Copyright (c) 2015 Marvelous Inc. All rights reserved.

©2014 YUJI SHIOZAKI ・WANI BOOKS/IKKITOUSEN EE PARTNERS©2014 Marvelous Inc.

13

Online Game Business:
Initiatives Starting in 2Q of FY Ending March 2016
TOPICS Dissemination of “NBA CLUTCH TIME” started inAustralia and New Zealand from July 29 Dissemination of “Logres of Swords and Sorcery:
Goddess of Ancient” in Taiwan, Hong Kong, andMacau scheduled in 2015

25,000(Unit: million yen)
■Net sales ■Operating income
8,000
23,00020,000

5,550

6,000

15,37915,000
3,815

4,000

10,000 Advance registration for Social Game “VALKYRIE
DRIVE -SIREN-” started on Mobage and GREE from
5,000
July 24
 Smartphone app “Samurai Jam -Bakumatsu Rock-:
0Ultimate Soul” scheduled for release in the summer of 2015

2,0000Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year〈Title Rollouts〉
Overseas Initiatives
NBA CLUTCH TIME
Currently being disseminated inTaiwan, Hong Kong, Macau, Australia
and New Zealand© 2015 NBA Properties, Inc. All Rights Reserved.
© NBAE via Getty Images© 2014-2015 Marvelous Inc.

Logres of Swords andSorcery: Goddess of Ancient

VALKYRIE DRIVE -SIREN-

Samurai Jam -BakumatsuRock-: Ultimate Soul

Dissemination in Taiwan, Hong Kong,and Macau scheduled in 2015

Advance registration started
July 24, 2015

Scheduled for release inthe summer of 2015

©Marvelous Inc. ©VALKYRIE DRIVE PARTNERS© 2014 Marvelous Inc.

©Marvelous Inc. Aiming Inc.

Copyright (c) 2015 Marvelous Inc. All rights reserved.

14

Consumer Game Business:
FY Ending March 2016 Progress Status
1Q Results for FY Ending March 2016
Net sales: Higher sales from the release of new titles (No newproducts released in the year-earlier first quarter)
Profits:
Preceding costs from new product development andadvertising

Title Performance 3DS software “STORY OF SEASONS” (Japanese name:“BOKUJO MONOGATARI TSUNAGARU SHINTENCHI”)
marketed by US subsidiary Marvelous USA, Inc. marks
sustained successful repeat sales Successful start of new amusement machine“MONSTER HUNTER SPIRITS” launched on June 25〈Title Rollouts〉
Released June 18, 2015

©Yohsuke Tamori ©Yoshifumi Hashimoto (Marvelous Inc.)©2015 Marvelous Inc.

Copyright (c) 2015 Marvelous Inc. All rights reserved.

2,000

STORY OF SEASONS (3DS)
Released March 31, 2015 (North America)©2015 Marvelous Inc. All rights reserved.
Licensed to and published by XSEED Games / Marvelous USA, Inc.
©2015 Nintendo500
1,655
400

1,500

 Release of 3DS software “POPOLOCROIS BOKUJOMONOGATARI” on June 18

POPOLOCROISBOKUJO MONOGATARI (3DS)(Unit: million yen)
■Net sales ■Operating income

1,278298263

300

1,0002005001000

1Q Fiscal Year
ended March 2015

1Q Fiscal Yearending March 2016

0MONSTER HUNTER SPIRITS(Amusement)
Launched June 25, 2015

©CAPCOM CO., LTD. 2015 ALL RIGHTS RESERVED. / Marvelous Inc.

15

Consumer Game Business:
Initiatives Starting in 2Q of FY Ending March 2016TOPICS■Net sales ■Operating income(Unit: million yen)
1,500

9,000

 Release of “IA/VT - COLORFUL” on July 30

7,2007,500

 Release of “Luminous Arc Infinity” scheduled forAugust 6

1,2006,3766,000900

 Release of “NET HIGH” scheduled for November 26

4,500

 Release of “NITRO+BLASTERZ -HEROINES INFINITEDUEL-” scheduled for December 10
 Release of “VALKYRIE DRIVE -BHIKKHUNI-”
scheduled in 2015

3,000

IA/VT -COLORFUL(PS Vita)
Released July 30, 2015

©2015 Marvelous Inc./
1st PLACE Co Ltd. | IA PROJECT

Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year

NET HIGH(PS Vita)

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

Scheduled for release
August 6, 2015

Scheduled for release
November 26, 2015

Scheduled for release
December 10, 2015

©2015 Marvelous Inc.

Copyright (c) 2015 Marvelous Inc. All rights reserved.

600300Luminous Arc Infinity(PS Vita)©2015 Marvelous Inc.

550

1,500
0〈Title Rollouts〉

502©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/Norimitsu Kaiho,Sadoru Chiba,HOUBUNSHA©2015 Marvelous Inc.
©EXAMU Inc.

0

VALKYRIE DRIVE-BHIKKHUNI(PS Vita)
Scheduled for release in 2015

©2015 Marvelous Inc.
©VALKYRIE DRIVE PROJECT

16

Audio & Visual Business:
FY Ending March 2016 Progress Status
1Q Results for FY Ending March 2016

(Unit: million yen)

Net sales/Profits: Stage performances remain hugely popular and results
for related DVD products are steady. New TV anime also 1,000
a smash-hit, connecting to increased revenues and profits.

Title Performance Successful package sales launch of TV anime “My Teen
Romantic Comedy SNAFU TOO!” which started being broadcast
in April “Stage [Yowamushi Pedal] Ep. Inter High School The WINNER”
takes top slot in overall weekly DVD sales ranking of trend
information media Oricon Style (July 27)
 Performances of “Musical HAKUOKI” in May to June

Tokyo Ghoul √A

400

912825306

 Commercialization of package products for “Tokyo Ghoul √A,”
“Yona of the Dawn,” and “PRETTY CURE” series〈Title Rollouts〉■Net sales ■Operating income

300750228
5002002501000

1Q Fiscal Year
ended March 2015

Stage [Yowamushi Pedal]
My Teen Romantic Comedy
Ep. Inter High School The WINNER
SNAFU TOO!

Sales launch of the first volume
on March 27, 2015

Sales launch of the first volume
on June 24, 2015

©Sui Ishida/Shueisha,Tokyo Ghoul Production Committee©WATARU WATARI, SHOGAKUKAN／OREGAIRU2 PRODUCTION COMMITTEE

Released July 15, 2015

1Q Fiscal Yearending March 2016

0Musical HAKUOKIPerformances in May to June 2015

©IDEA FACTORY•DESIGN FACTORY/Musical HAKUOKI Project

Copyright (c) 2015 Marvelous Inc. All rights reserved.

©Wataru Watanabe (Akitashoten) 2008 / Yowamushi Pedal GR Film Partners©Wataru Watanabe (Akitashoten) 2008 / Marvelous, TOHO, DXL CREATION17Audio & Visual Business:
Initiatives Starting in 2Q of FY Ending March 2016TOPICS

6,000

Release of OVA Tokyo Ghoul “JACK” and “PINTO,” and stage
performance of new production “Tokyo Ghoul the Stage” in July

5,000

Stage performances of “Stage K Ⅱ -AROUSAL OF KING-,” thesequel to “Stage K” performed in August 2014, scheduled for August

4,000■Net sales ■Operating income(Unit: million yen)

4,800

4,699

1,500
1,089

1,100
1,000

3,000



“ULTRA MUSICAL Samurai Jam -Bakumatsu Rock-” performed inDecember 2014 scheduled for stage performance revival as “HYPERMUSICAL Samurai Jam -Bakumatsu Rock-” in August

2,000

2,0005001,000

Performances of “MUSICAL THE PRINCE OF TENNIS 3rd Season
SEIGAKU vs St.RUDOLPH” scheduled from September〈Title Rollouts〉
Tokyo Ghoul
the Stage

Stage K Ⅱ
-AROUSAL OF KING-

Performances in July 2015

Performances scheduled in August 2015

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

Copyright (c) 2015 Marvelous Inc. All rights reserved.

0

Fiscal Year ended
March 2015

Fiscal Year ending
March 2016

Full year

Full year

0

MUSICAL THE PRINCE OF TENNIS3rd Season
HYPER MUSICAL Samurai JamSEIGAKU vs St.RUDOLPH-Bakumatsu RockPerformances scheduled in August 2015©2014 Marvelous Inc./BakumatsuRock Production Committee©2014 Marvelous Inc./ULTRA MUSICAL BakumatsuRock Production Committee

Performances scheduled
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

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 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) 2015 Marvelous Inc. All rights reserved.