FY2015 Financial Results GungHo Online Entertainment, Inc. (3765) Feb 2, 2016
Sales Operating profit (Unit: 100 Million yen) 1,630 1,730 1,543 912 942 724 Sales declined From the previous year, yet Earnings are stable and high 258 92 2012 2013 2014 2015 2
Sales Operating profit (Unit: 100 million yen) 446 377 368 350 236 177 173 Stable quarterly 135 performance 2015.1Q 2Q 3Q 4Q 3
Non-consolidated monthly sales trend Spikes seen with events held. Observed stable quarterly performance overall. 4
Status for each title 5
Puzzle & Dragons Focusing on MAU, a long product life is generated. 6
Puzzle & Dragons ranked as #1 popular game app in the year 2015 (by Famitsu) (Duration of study: from December 29, 2014 November 29, 2015/ Source: Famitsu Powered by eb-i) Rank App title Cumulative play point 1 Puzzle & Dragons 695,180 2 LINE: Disney Tsum Tsum 662,418 3 Monster Strike 330,249 4 Love Live! School idol festival 233,520 5 Puyopuyo!! Quest 187,857 6 LINE Pokopoko 177,241 7 Quiz RPG: The World of Mystic Wiz 161,053 8 Candy Crush 158,473 9 Hay Day 145,363 10 FINAL FANTASY Record Keeper 133,443 Summary of the study Subject: 10-69 year-old male and female 47 prefectures nationwide Method: Internet research by the large sized user research system eb-i Duration: Dec 29, 2015 Nov 29, 2015 * This ranking is calculated from a point value with the consideration of cumulative play time and # of players 7
Puzzle & Dragons Co-op play dungeon Friend matching feature to be implemented Multi-player specific clear rewards under consideration 8
North America Puzzle & Dragons Over 9M DLs (As of December 2015) 2016.01~ TV CM re-launched 2012 2013 2014 2015 9
Chinese Puzzle & Dragons Development Continued (Scheduled in Q1 2016) 10
Puzzle & Dragons 4 th anniversary live stream on Feb 19! 11
Latest version of Puzzle & Dragons Title Compatible devices Category PUZZLE & DRAGONS X New Nintendo 3DS/New Nintendo 3DS LL/Nintendo 3DS/Nintendo 3DS LL Puzzle role playing game (RPG) No. of players Scheduled release Price CERO One person *can play online Due 2016 Boxed version: Undetermined Download version: Undetermined * This product does not contain any additional billing elements within the game. Inspection planned * Screen shots are under development. Details are subject to change without notice. 12
Summons Board (Japan) # of DL increased with effective TV CM Summons Board 4M DLs (As of October 4, 2015) 13
Summons Board (Overseas) Service started in Taiwan, Hong Kong and Macao 2016.01.26 launched 14
Divine Gate Anime broadcasting started on TV TOKYO MX and others 2016.01.08 broadcasting started *Other channels are as followed Aichi Television Broadcasting Sun Television Kyoto Broadcasting System TV Setouchi Broadcasting TVQ Kyushu Broadcasting BS11 15
Divine Gate Expanded multiuse operation Collaboration with shops TV anime Hosting off-line event BD&DVD distribution Distribution of original products 16
Introducing new games (2 titles) 17
New game on smartphone Slated for Spring 2016 18
New game LET IT DIE for PlayStation 4 Title LET IT DIE Category Survival Action Compatible devices PlayStation 4 Scheduled release Due 2016 Online Asynchronous Online CERO Inspection planned Developer Grasshopper Manufacture Inc. Publisher GungHo Online Entertainment, Inc. * Screen shots are under development. Details are subject to change without notice. 19
New Business Partner publishing 20
Partner Publishing 2 titles to be released GungHo Group release Google Play Developers Around the world License Deal release release AppStore Kindre Fire Providing support for localization and long-term operation and support Distribution/ release Distribution/ release Game system New game system Challenge to expand in overseas market Content consumption patterns differ in each country Difference in users taste and commercial custom Content optimization needed to cater to each market needs 21
Partner Publishing Business REPUBLIQUE To be released in first half of 2016! Compatible devices PlayStaion 4 Price Boxed version: JPY 3,600 (tax excluded) Category Stealth adventure Download version: JPY 3,000 (tax excluded) Developer Camouflaj CERO Inspection planned Publisher GungHo Online Entertainment, Inc. 2016 Camouflaj, LLC GungHo Online Entertainment, Inc. All Rights Reserved. 22
Partner Publishing Business Obtain exclusive distribution rights in Japan from Gameloft S.E. The first Disney:Magic Kingdoms 23
Business strategy in 2016 Creation of new value New game development Expansion of development site (Strengthen development at the US subsidiary) Maximizing the existing asset value Releasing popular games onto multi-platforms Effective partner publishing using accumulated operation expertise (long lasting operation method, CS, etc.) Global Business Expansion of distribution areas Growing global game brands 24
Thank you! GungHo Online Entertainment, Inc. IR Group, Business Planning Department ir@gungho.jp 25
Appendix 26
Consolidated PL statement Consolidated PL trend Million Yen FY2015 Q4 (Oct-Dec 2015) FY2015 Q3 (Jul-Sep 2015) Change Ratio Q on Q FY2014 Q4 (Oct-Dec 2015) Change Ratio Y on Y Net sales 35,110 36,878 4.8% 40,241 12.8% Cost of sales 11,656 12,148 4.1% 13,198 11.7% Cost of sales ratio (33.2%) (32.9%) (0.3p) (32.8%) (0.4p) SG&A 9,886 7,335 34.8% 6,201 59.4% Operating profit 13,566 17,394 22.0% 20,841 34.9% Operating profit ratio (38.6%) (47.2%) ( 8.6p) (51.8%) ( 13.2p) Ordinary profit 13,543 17,529 22.7% 21,020 35.6% Pretax profit 10,973 17,348 36.8% 21,018 47.8% Net profit 6,180 10,950 43.6% 12,323 49.8% 27
Consolidated PL statement SG&A trend (Million Yen) 10,000 9,886 1,047 8,000 6,000 4,000 5,071 5,242 619 649 2,963 3,086 6,281 6,201 653 1,031 4,164 3,268 6,545 845 3,946 7,335 7,142 838 842 4,492 4,583 7,021 2,000 1,488 1,506 1,463 1,902 1,754 1,811 1,910 1,860 0 2014.1Q 2Q 3Q 4Q 2015.1Q 2Q 3Q 4Q Salaries 619 649 653 1,031 845 838 842 1,047 PR/Marketing 2,963 3,086 4,164 3,268 3,946 4,492 4,583 7,021 Others 1,488 1,506 1,463 1,902 1,754 1,811 1,910 1,860 28
Non-consolidated headcount trend 400 300 200 46 65 46 45 47 49 48 49 51 66 72 72 69 67 68 69 100 157 177 180 182 190 197 205 207 0 52 44 44 44 42 42 41 39 2014.1Q 2Q 3Q 4Q 2015.1Q 2Q 3Q 4Q Admin, etc. 46 46 45 47 49 48 49 51 CS/System related 65 66 72 72 69 67 68 69 Mobile consumer 157 177 180 182 190 197 205 207 PC online 52 44 44 44 42 42 41 39 29