Financial-Results-For-3Q-FY2013
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Financial Results for 3Q FY2013 (Year ending June 30, 2013) Voltage Inc. May 10, 2013 TSE 1t1st. Sec tion Secur ities Co de: 3639 Ⅰ. Results for 3Q Measures for Ⅱ. 4Q and beyond 1 III. Results for 3Q Summary of Results for 3Q FY2013 Corporate results Released 4 new titles in Japan and 5 new titles in foreign countries • The most profit-earning titles are the major 5 titles, including "A Prince's Proposal" and "My SilSocial apps Sweet Bodyguard “. • Newly launched the 5th generation of "Roommate" (Farm Avatar). BU • Started distributing native apps "Pirates in Love 2" and "Seduced in the Sleepless City" of the rket Company’s proprietary PF "Joshi games". aa Carrier • The most profit-earning titles are the main 10 titles, including "My Forged Wedding" and "My official Sweet Bodyguard". • Newly released “Kiss of Revenge" and the title was releated for the second season "Staying ese m sites BU With You Tonight season 2". nn Smartphone • Upgraded the apps development library from “A-Vapl1.0” to “A-Vapl2.1” Japa apps • Newly released the "Dating the Devil" as the first title of "A-Vapl2.1". BU • Placed animation-style TV commercials for "My Forged Wedding" in January. et • Released new title for smartphone apps “My Sweet Bodyguard" and new title for social apps kk Overseas “Celeblity Darling". CG • Released “My Sweet Bodyguard" in the Facebook version. *All the 3 titles are in Japanese specs/translated version eas mar ss • Released 3 new titles , including 1 title of “Glass Stilettos in Manhattan" for smartphone apps U.S. subsidiary in the North American specs. Over • Favorable performance of“Knight of My Heart" released in an attempt of new taste. Voltage Inc. copyright voltage inc, All rights reserved. 3 Title Release / TV Commercial 4Q 1Q 2Q 3Q ps cial pp oo a S 3rd-generation 5th Smart- 4th generation 3rd-generation Feature phone / phone deployment deployment Smartphone generation tes rr Carrie Feature Smart- Season 2 Season 2 official si official phone phone Season 2 apps artphone mm A-Vapl2.1 S A-Vapl A-Vapl A-Vapl2.1 Head Office eas FB version ss U.S. Over CM Voltage Inc. copyright voltage inc, All rights reserved. 4 Summary (Consolidated) [Millions of Yen] Japan Consolidated U.S. subsidiary HdHeadquar ters 3Q FY2013 3Q FY2013 3Q FY2013 (approximate) Net sales 6,864 6,875 3 Cost of sales 1,935 1,872 72 SG&A expenses 4, 753 4,696 55 Operating income 174 306 -125 Voltage Inc. copyright voltage inc, All rights reserved. 5 Summary of Results – Japan Headquarters – (Non-Consolidated) NNliet sales increased dbb by about ¥1,000 milli on and operati ng i ncome d ecreased b y ab out ¥280 milli on (YoY) As a result of the completion of the Big Bang (drastic headcount increase), sales will continue to rise. FY2013 FY2012 1H FY2013 3Q FY2013 3Q FY2013 %to % to % to [Millions of Yen] Net Sales Net Sales YoY Net Sales Net sales 4, 631 100.0% 6, 875 100.0% +17.1% 5,872 100.0% Cost of sales 1,183 25.6% 1,872 27.2% +47.7% Iincrease caused by the rise in headcount for 1,267 21.6% Labor cost 516 11. 2% 802 11. 7% +75. 6% production and systems 22% dldevelopmen tithBiBt with Big Bang 456 78%7.8% Outsourcing cost 9.2% 9.9% +76.7% 14% 425 679 384 6.5% Other costs 5.2% 5.7% -8.3% 241 390 Increase/decrease 426 7.3% SG&A of net sales 71. 5% 68. 3% +16. 9% +7pt expenses 3, 310 4, 696 4, 016 68.4% Advertising 1,476 31.9% 1,900 27.6% +4.1% expenses 55% 1,826 31.1% 54% Sales commission 1,231 26.6% 1,850 26.9% +36.9% Due to the higher percentage of social apps to net sales 1,351 23.0% OhOther costs 13. 0% 13. 8% +12. 6% 602 945 839 14.3% Operating 3.0% 4.5% -47.9% income 136 306 587 10.0% OOdrdin ayary inco coeme 3.1% 4.8% -43.7% 145 333 591 10. 1% Net income 1.9% 3.0% -41.3% 88 203 346 5.9% Voltage Inc. copyright voltage inc, All rights reserved. 6 % of Smartphone VVltoltage’ s sh are exceed s J apan’ s smartthphone penetttiration rat e All-Japan Voltage*3 (Smartphone sales ratio) Smartphone Carrier official penetration rate Social apps sites Smartphone 100% Feature- phone 80% 46% 55% 63% 66% 60% 53% 63% 100% 40% 100% Smart- 47% 53% phone 20% 37% 44% 34% 37% 0% December*1 March *2 December March December March December March *1. "Smartphone contract ratio" was estimated by Voltage Inc. based on "Trends and Forecasts for Size of Smartphone Market at March 2012" released by MM Research Institute, Ltd. on March 13, 2012. *2. "Trends and Forecasts for Size of Smartphone Market at March 2012" released by MM Research Institute, Ltd. on March 28, 2012. *3. Feature phone-smartphone parallel distribution sites only. Voltage Inc. copyright voltage inc, All rights reserved. 7 Ranking in the Japanese Market For smart ph one apps, 7 titl es rank ed i n T op 20 i n J apanese A pp St ore E nt ert ai nment . Social apps Carrier official sites Smartphone apps [GREE game ranking for females] [i-mode ranking by category] [AppStore Top Sales Entertainment] DtDate surveye d: MhMarch 28, 2013 CildCompiled: Db1tDecember 1 to MhMarch 31, 2012 Complied as of April 18, 2013 (Romantic games) Ranking Application Name Ranking Site Name Ranking Application Name 1 Chokotto Farm Season 2 1 COLOPL 1 My Forged Wedding Launched In 1Q 2 A Prince’s Proposal for GREE 2 My Sweet Bodyguard 2 Office Romance Secret Love 3 Bokuno Restaurant 2 3 Seduced in the Sleepless City 3 Nico Nico Douga 4 DRAGON COLLECTION A Prince’s Proposal Season 2 4 Launched In 1Q 4 Staying With You Tonight Launched 5 Roommate In 3Q 5 Oto Mate Mobile 5 Cho Ataru Koseido Seimei Handan 6 My Sweet Bodyguard Premium 6 Kichijoji Days of Love 6 Yome Collection Staying With You Tonight Season 2 Launched 7 AKB48 Mobile(official) 7 Onmyoji ~Heian Yokitan~ 7 In 3Q 8 [Tanjobi Uranai] 365-nichi no Ango 8 Galsho 8 Love Letter from Thief X [Cho Nomitsu Uranai] Ai to Yokyu no 9 9 Poptower for GREE Special Investigation Team Sekirara Suhi Uranai 9 Launched Advance content 10 Dating the Devil In 3Q 10 Pirates in Love – Just One Rule generation 10 Pirates in Love Launched In 2Q [Cho Nomitsu Uranai] Ai to Yokyu no 11 11 Shinsho Ikemen Ooku Kinjirareta Koi 11 School Trip Secret Sekirara Suhi Uranai 12 Shingoku no Valhalla Knights 12 First Love Diary by the Sea 12 My Forged Wedding Seduced in the Sleepless City for 13 Launched 13 Dating the Devil 13 My Sweet Bodyguard GREE In 3Q Kiss of Revenge Launched 14 YuYuHakusho-Makai Toitsu Saikyo Battle- 14 In 3Q 14 Akinator the Genie 15 Swordart Online End World 15 Office Secrets 15 Sogen Fujiki Seimei Handan 16 Iron Chef for GREE New Challengers 16 Roommate 16 Love Letter from Thief X Official Romance Secret Love for Koi no Tsuzuki wa Launched 17 17 In 2Q 17 Niconico Live Broadcast GREE Honey Moon de Dosokai wa Koi no Hajimari 18 18 PlatinumGirl 18 Kiss of Revenge 98% Tekichu! Ginza no Haha Kaiun Seimei Kimi wo Aisu Nandodemo Launched 19 19 Ikemen Rensen ♦Kiyomori Taira for GREE 19 In 2Q Handan 20 Bokura no Pocket Dungeon 2 20 Kaseifu - Koi wa Keiyaku kara 20 Tsuya Girl Voltage Inc. copyright voltage inc, All rights reserved. 8 (Total 176 sites) : Voltage Inc. Ranking in the Overseas Market For smartphone apps , 6 titles ranked in Top 20 in U .S . App Store Entertainment . Social apps Smartphone apps [GREE game ranking] Compiled as of April 23, 2013 [App Store Top Grossing iPhone Entertainment] USA USA Singapore Complied as of March 8, 2013 Complied as of April 18, 2013 Ranking Application Name Ranking Application Name Ranking Application Name Reigen of Dragons 1 Disney Jun ior App iso des LhdLaunched 1 1 Be My Princess In 2Q 2 Akinator the Genie 2 Be My Princess for GREE Launched Launched 2 My Sweet Bodyguard for GREE In 2Q 3 Be My Princess In 2Q 3 Driland 3 Be My Princess for GREE 4 Cerberus Age Launched 4 SlingPlayer for iPhone Launched 4 Celebrity Darling for GREE In 3Q In 2Q 5 Action Movie FX My Sweet Bodyguard for GREE Launched 5 6 Emoji ;) 5 A Knight’s Devotion In 3Q 6 ShallWeDate?:NinjaLove for GREE Launched A Knight’s Devotion Launched 6 Love Letter from Thief X In 2Q 7 Magnus Ignis 7 In 3Q 7 kk唱响 Celebrity Darling for GREE Launched 8 Pirates In Love 8 In 3Q 8 Pirates In Love 9 Dark Abyss Launched 9 Love Letter from Thief X In 2Q 9 My Forged Wedding 10 Dragon Summoner 10 Live Esoteric Chat ,Oranum 10 F✽✽✽ 11 Dragon Cavalier Launched 11 Justin.tv 11 Seduced in the Sleepless City In 2Q 12 Haypi Kingdom for GREE 12 Gun Builder ELITE Launched 12 In Your Arms Tonight In 2Q 13 War 2 Victory for GREE This American Life 13 13 Apps Magazine App 14 Gunners UiUnion Be My Princess for GREE Launched Launched 14 In 2Q 14 My Sweet Bodyguard In 3Q 15 Boyaa Poker 15 Emoiji> 15 Staying With You Tonight 16 Clinoppe 16 The Harlem Shake 16 友加 17 Destroy Gunners ZZ 17 iGun Pro™ - The Original Gun Application 17 FHM Magazine Philippines 18 Titans Mobile 18 Pocket God 18 AVPlayer 19 SCARESOUL Launched 19 Celebrity Darling for GREE In 3Q 19 I'ma Unicorn 20 Pirates Age 20 Reddit Pics HD 20 Play Tube Free-Best Youtube Player Voltage Inc.