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

Results Briefing Materials

Fiscal Year Ending March 31, 2020
First Half
October 31, 2019

Contents

Fiscal Year Ending March 2020, First-Half Results Summary
Segment Results and Full-Year Business Forecast

Copyright (c) 2019 Marvelous Inc. All rights reserved.

2

Fiscal Year Ending March 2020,
First-Half Results Summary

Earnings Highlights (Statement of Profit and Loss)•Sales revenues decreased due to lower sales of online games and timing difference inrevenue recognition from stage performance operations•Earnings decreased due to the above-mentioned sales decline and the absence of income
from the sale of software assets, etc., posted in 2Q of the previous fiscal year
1H FY ended March 2019

(Unit: million yen)

Actual1H FY ending March 2020

Profit ratio

Actual

YOY change

Profit ratio(Amount)(%)

Net sales

13,314-

10,836--2,477

81.4%

Cost of sales

6,348-

5,609-

-738

88.4%

SGA expenses

4,198-

3,962-

-236

94.4%

671-

724-

53

107.9%

Operating profit

2,767

20.8%

1,264

11.7%

-1,50245.7%

Non-operating
profit/losses

103--16--119-

Ordinary profit

2,870

21.6%

1,247

11.5%

-1,62243.5%

Extraordinary
profit/losses

2--25--28-

Income taxes

931

-478

-

-452

51.4%

Profit attributable toowners of parent

1,941

14.6%

743

6.9%

-1,197

38.3%

Thereof advertisingexpenses

Copyright (c) 2019 Marvelous Inc. All rights reserved.

4

Segment Results(Unit: million yen)

1H FY ended
March 2019

1H FY ending
March 2020

ActualActual

YOY change(Amount)(%)

Online GameBusiness

4,478

3,553

-925

79.3%

Consumer GameBusiness

5,716

5,241-475

91.7%

Audio & VisualBusiness

3,125

2,059

-1,06565.9%

13,314

10,836-2,477

81.4%

Net sales

Total

Online GameBusiness

364

500

135137.2%

Consumer GameBusiness

2,036875-1,16043.0%

Audio & VisualBusiness

1,042

616

-426

59.1%

3,444

1,993

-1,45057.9%

Company-level costs, etc.

-676-728-52

107.7%

Operating profit total

2,767

1,264

-1,50245.7%

Segment
profitTotal

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Online Game Business• Sales of long-seller titles
continue to decline• Income margins improvedmainly due to structural reform
effects and the disposal of
unprofitable titles

Consumer Game Business• Pokémon Ga-Olé performingfavorably• Solid sales of new game software• Absence of previous fiscal year’s
income from assets sales

Audio & Visual Business• Timing difference in revenue
recognition from stage
performance operations• Audio & Visual business on a parwith the previous fiscal year5

Development of Net Sales and Operating Profit by Segment(Quarterly)■Audio & Visual Business■Consumer Game Business■Online Game Business
Unit: million yen (percent of sales)
8,637
1,459

7,901

7,751(16.9%)

7,018

6,795
6,203945

1,897

1,303(19.2%)(15.2%)(24.5%)

1,970(24.9%)(29.0%)

6,375(26.8%)

1,799
2,986

1,798

4,822
2,568
(33.1%)(20.6%)

6,583(25.6%)

2,261(32.9%)(21.1%)

4,518
2,341

2,159(38.6%)(36.7%)

2,668

3,048

(42.4%)(43.4%)(34.8%)

2,309
2,196

3,530(51.9%)(48.7%)(24.3%)(31.9%)

1,761(39.0%)

3,295(42.5%)

2,330

2,243(48.3%)(36.2%)

2,724(42.7%)

2,736(34.6%)

2,302

2,175(36.6%)(31.0%)

2,430(35.3%)

2,790(42.4%)

1,658(36.7%)

1Q

2Q

3Q

3,479(55.1%)

4,207(59.9%)

1,098(35.1%)(27.8%)

3,717

961(15.2%)(22.6%)

3,051(24.1%)

6,318

1,489(29.0%)

1,164

1,338

6,879

6,296
1,326

1,318(34.6%)

1,542

6,192

2,115

4Q

1Q

FY ended
March 20172017年3月期

2Q

3Q

4Q

FY ended
March 20182018年3月期

1Q

2Q

3Q

FY ended
March 20192019年3月期

4Q

1Q

1,894(30.0%)

2Q

2020年3月期
FY endingMarch 2020

Note: Totals may not tally to 100% due to rounding of sales percentages to the first decimal point.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

6

Segment Results and Full-Year Business Forecast

Online Game Business:
1H FY Ending March 2020 Progress Status■■Net sales ■■ Segment profit[Results Up Until 1H FY Ending March 2020](Unit: million yen)

Revenues decreased due to lower sales of long-seller titles and a smaller
number of titles, but profitability improved, and income rose due to the previous

4,478

fiscal year’s structural reform effects and disposal of unprofitable titles

3,553[Title Performance]
"SHINOVI MASTER -SENRAN KAGURA NEW LINK-" maintained solid
performance but sales of "Logres of Swords and Sorcery: Goddess ofAncient" decreased due to aging

Latest production of the "Logres" series "LOGRES STORIES" and"GIRL CAFE GUN" barrage shooting game for smartphones originatingfrom China both launched in September, with limited contributions to 2Q

364
1H Fiscal Year
ended March
2019

500

1H Fiscal Yearending March
2020[Title Rollouts]
SHINOVI MASTER
Logres of Swords and Sorcery:-SENRAN KAGURA NEW LINKGoddess of Ancient

LOGRES STORIESGIRL CAFE GUN(native app)(native app)(native app)(native app)

Launched in November 2017

Launched in December 2013

Launched on
September 18, 2019

Launched on
September 20, 2019

©Marvelous Inc. Aiming Inc.

©Seasun Inc. / ©Marvelous Inc.

©Marvelous Inc.
©HONEY PARADE GAMES Inc.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

©Marvelous Inc. Aiming Inc.

8

Online Game Business:
Initiatives Starting in 3Q of FY Ending March 2020
 Focus on promoting "LOGRES STORIES" and "GIRL CAFE GUN" launched in September tomainstay titles
 New novel app slated to be launched in the winter (title undecided)
 Dedicated efforts continue to develop new game apps with service starts this fiscal year
LOGRES STORIESGIRL CAFE GUN(native app)(native app)

Launched on September 18, 2019

Launched on September 20, 2019

©Marvelous Inc. Aiming Inc.

©Seasun Inc. / ©Marvelous Inc.

Title undecided

Title undecided(novel app)(native app)

New novel app

New app game

Scheduled to be launched this winterDistribution to be determined

Copyright (c) 2019 Marvelous Inc. All rights reserved.

9Consumer Game Business:
1H FY Ending March 2020 Progress Status[Results Up Until 1H FY Ending March 2020]■■ Net sales

Continued favorable performance of Pokémon Ga-Olé and solid
trend in sales of game software, but income decreased mainly due
to the absence of previous fiscal year’s income from assets sales■■ Segment profit (Unit: million yen)

5,716

5,241

[Title Performance]
 Sales launch of "Rune Factory 4 Special (Nintendo Switch)" in July New action "DAEMON X MACHINA (Nintendo Switch)" inworldwide simultaneous sales release in September
 Amusement business saw continued favorable performance of"Pokémon Ga-Olé" and start of operations of new rhythm game
“WACCA” on July 18[Title Rollouts]

2,036875

1H Fiscal Year
ended March2019

1H Fiscal Yearending March2020

Rune Factory 4 Special

DAEMON X MACHINA

Pokémon Ga-Olé

WACCA(Nintendo Switch)(Nintendo Switch)(Amusement)(Amusement)

Released on July 25, 2019

Released on September 13, 2019©2019 Marvelous Inc.

©2019 Marvelous Inc.

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Operations started in July 2016©2019 Pokémon. ©1995-2019 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARVTM, ®, and character names are trademarks of Nintendo.

Operations startedon July 18, 2019
©Marvelous Inc. / Supported by HARDCORE TANO*C10Consumer Game Business:
Initiatives Starting in 3Q of FY Ending March 2020
 "BOKUJO MONOGATARI SAIKAI NO MINERAL TOWN," first in the series of titles for Nintendo Switch, and"Travis Strikes Again: No More Heroes Complete Edition" as latest production of the "NO MORE HEROES"
series were released in October, followed by overseas-acquired title "CONTROL" slated for release inDecember, and new project "KANDAGAWA JET GIRLS" scheduled for release in January
BOKUJO MONOGATARISAIKAI NO MINERAL TOWN

Travis Strikes Again:
No More Heroes
Complete Edition(Nintendo Switch)(PlayStation®4/Steam®)

Released on October 17, 2019©2019 Marvelous Inc.

PS4® version: Released on October 17, 2019
Steam® version: Distribution launched onOctober 18, 2019
©Marvelous Inc. / Grasshopper Manufacture Inc.

CONTROL

KANDAGAWA JET GIRLS(PlayStation®4)(PlayStation®4)

Scheduled to be releasedon December 12, 2019

Scheduled to be releasedon January 16, 2020

Developed by Remedy Entertainment, Plc. Published by 505 Games. Licensed to and published in Japan by Marvelous Inc.
The Remedy logo and Northlight are trademarks of Remedy Entertainment Oyj, registered in the U.S. and other countries.
Control is a trademark of Remedy Entertainment Oyj. 505 Games and the 505 Games logo are trademarks of 505 Games
SpA, and may be registered in the United States and other countries. All other marks and trademarks are the property of
their respective owners. All rights reserved.

©2019 Marvelous Inc./HONEY PARADE GAMES Inc. ©2019
KJG PARTNERS

Copyright (c) 2019 Marvelous Inc. All rights reserved.

11

Audio & Visual Business:
1H FY Ending March 2020 Progress Status[Results Up Until 1H FY Ending March 2020]■■ Net sales ■■ Segment profit (Unit: million yen)
All stage performances proved highly popular, but with timedifference in revenue recognition until 3Q, revenues and earnings
declined
3,125[Title Performance]Stage performance operations came out with new productions "Touken
Ranbu the Stage," "MUSICAL THE PRINCE OF TENNIS," and "Ensemble
Stars! On Stage"

Sales release of Blu-ray / DVD performances of "Stage K," "Musical
HAKUOKI SHITAN," and "MUSICAL 『MORIARTY THE PATRIOT』“

2,0591,042616

Sales release of the Blu-ray / DVD versions of "Pretty Cure Miracle
Universe the Movie" at the Audio & Visual Business[Title Rollouts]

1H Fiscal Year
ended March
2019

MUSICAL THE PRINCE OF TENNIS
3rd SEASON National Tournament
SEIGAKU vs RIKKAI The First Half

1H Fiscal Yearending March
2020

Pretty Cure
Miracle Universe the Movie"Ensemble Stars! Extra Stage"～Destruction × Road～

Touken Ranbu the Stage

Performances from June
to August 2019 (3Q)
© Touken Ranbu the Stage Production Committee©2015-2019 DMM GAMES/Nitroplus

Performances from Julyto September 2019 (3Q)©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2019 Marvelous Inc. All rights reserved.

Performances from August
to September 2019 (3Q)©2016 Happy Elements K.K／Ensemble Stars! STAGE PROJECT

DVD/BD Sales launchedin July 2019
© 2019 Pretty Cure Miracle Universe the Movie Production Committee

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Audio & Visual Business:
Initiatives Starting in 3Q of FY Ending March 2020
In the anime segment, release of the latest movie production of Pretty Cure starting in October

In the stage performance segment, latest series productions, LIVE performances, and completely
new productions are scheduled for release
Star Twinkle Pretty Curethe Movie
Musical AOHARU-TETSUDOCONCERT Rails Live 2019

Released in October 2019©2019 Star Twinkle Pretty Cure the Movie Production Committee

Performances from October
to November 2019

Performances scheduled
for November 2019

©Musical AOHARU TETSUDO Project©Yasuhiro Nighitow/SHUEISHA©Blood Blockade Battlefront" the StagePERSONA5 the Stage
Touken Ranbu the Stage

Performances scheduledfor December 2019©ATLUS ©SEGA ©SEGA/PERSONA5 the Stage Project“Blood BlockadeBattlefront” the Stage

Public performances scheduled forNov. 2019 – Jan. 2020
©Touken Ranbu the Stage Production Committee©2015-2019 DMM GAMES/Nitroplus

MUSICAL THE PRINCE OF TENNIS
3rd SEASON National Tournament
SEIGAKU vs RIKKAI The Last Half

Public performances scheduled forDec. 2019 – Feb. 2020©2009 TAKESHI KONOMI ©2014 NAS, THE PRINCE OF TENNIS II PROJECT©1999 TAKESHI KONOMI/2015 MUSICAL THE PRINCE OF TENNIS PROJECT

Copyright (c) 2019 Marvelous Inc. All rights reserved.

13

Fiscal Year Ending March 2020, Business Forecast
Unit: million yen

35,000FY ended March 2019

FY ending March 2020

ActualForecast

Profit ratio

YOY change

Profit ratio(Amount)(%)

Net sales

26,777－26,000－

-777

97.1%

Operating profit

4,706

17.6%

3,800

14.6%

-906

80.7%

Ordinary profit

4,791

17.9%

3,800

14.6%

-991

79.3%

Profit attributable toowners of parent

3,351

12.5%

2,600

10.0%

-751

77.6%

■Net sales ■Operating profit

10,00031,82029,387
26,441

28,00021,00020,33025,291
5,418

17,5794,412

26,77726,000

5,754
5,147

6,000

4,706
3,800

14,000

8,000

3,006

4,000

2,329
2,000

7,000

00

2013年3月期
2014年3月期
ended March FY2016年3月期
ended MarchFY
ended March FY
ended March FY2015年3月期
2015
2016
2013
2014

Copyright (c) 2019 Marvelous Inc. All rights reserved.

2017年3月期
FY
ended March FY2018年3月期
ended March FY2019年3月期
ended March20172018
2019

FY2020年3月期
ending March2020（予想）(Forecast)14

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) 2019 Marvelous Inc. All rights reserved.

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