FY2020 Q1 Earnings Result Briefing Session Apr 1, 2019–Jun 30, 2019
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FY2020 Q1 Earnings Result Briefing Session Apr 1, 2019–Jun 30, 2019 August 9, 2019 ©mixi, Inc. All rights reserved. Contents 1. Financial Status 2. Business Status ▪Entertainment Business ▪Lifestyle Business 3. Appendix ©mixi, Inc. All rights reserved. Contents 1. Financial Status 2. Business Status ▪Entertainment Business ▪Lifestyle Business 3. Appendix ©mixi, Inc. All rights reserved. 4 Quarterly Consolidated Income Unit: millions of yen FY2020/Q1 FY2019/Q1 Change (Apr 2019– Jun 2019) (Apr 2018– Jun 2018) (YoY) Net Sales 20,780 34,561 (39.9)% Operating (85.2)% Income 1,637 11,029 Ordinary Income 1,683 11,028 (84.7)% Profit Attributable to Owners of Parent 1,134 7,294 (84.4)% ©mixi, Inc. All rights reserved. 5 Quarterly Divisional Performance Unit: millions of yen Entertainment sales Lifestyle sales 60,000 Operating income 50,000 40,000 30,000 20,000 10,000 0 FY2018 FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Entertainment Sales 44,981 41,271 38,306 51,388 32,709 35,335 33,545 37,015 19,970 Lifestyle sales 3,247 3,755 3,872 2,269 1,851 1,148 1,393 1,033 810 Operating income 20,209 16,699 10,949 24,501 11,029 9,496 6,175 14,134 1,637 ©mixi, Inc. All rights reserved. 6 Quarterly Sales Costs Unit: millions of yen 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY2018 FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Outsourcing 5,226 4,010 3,961 4,660 3,128 3,643 4,276 3,744 3,299 Personnel expenses for development 543 690 596 753 582 688 581 694 583 Content procurement expenses 33 32 27 19 19 17 16 16 16 Depreciation 34 36 40 53 52 60 57 73 81 Rental charges 259 301 364 347 332 326 419 374 351 Purchases 145 253 183 189 204 227 182 218 131 Others 69 52 72 92 66 78 72 67 48 ©mixi, Inc. All rights reserved. 7 Quarterly SG&A Expenses Unit: millions of yen 30,000 25,000 20,000 15,000 10,000 5,000 0 FY2018 FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Settlement fees 13,832 12,746 13,097 13,958 9,847 10,446 11,013 9,535 5,576 Advertising 4,529 5,947 8,429 4,687 5,267 6,991 8,120 4,039 4,053 Outsourcing 626 788 1,517 1,145 1,026 1,058 1,189 1,672 1,931 Personnel 1,082 1,756 1,160 1,363 1,439 1,696 1,366 1,564 1,518 Rents on properties 288 327 346 358 375 369 373 389 407 Amortization of Goodwill 361 361 361 ー ー ー ー ー 97 Tax and public charge 319 289 193 454 184 209 127 316 91 Others 665 735 879 1,071 1,002 975 967 1,207 957 ©mixi, Inc. All rights reserved. 8 Performance up to 1st Quarter FY2020 The progress rate of incomes is high, but this can be attributed to relocation expenses being posted during the 2nd half of the fiscal year, etc. These results roughly follow our performance forecast Unit: millions of yen FY2020 forecast Net sales 20.8% 79.2% 100,000 Operating income 32.7% 67.3% 5,000 Ordinary income 33.7% 66.3% 5,000 Current income 37.8% 62.2% 3,000 ©mixi, Inc. All rights reserved. Contents 1. Financial Status 2. Business Status ▪Entertainment Business ▪Lifestyle Business 3. Appendix ©mixi, Inc. All rights reserved. Entertainment Business 10 Focus Theme Status (Repost a presentation material for FY2019’s Earnings Result Briefing Session) Revitalize Monster Strike Grow Sports Businesses ©mixi, Inc. All rights reserved. 11 Entertainment Business: Monster Strike Revitalization Revitalization Plan and Medium-to-Long Term Strategy The new head of operations will create short- and medium-to-long term strategies. The revitalization plan aims to cause a V-shaped recovery in the short term through various reforms and maximized value for the Monster Strike brand in the future. Short-Term Strategy (Revitalization Plan) Medium-to-Long Term Strategy • Aim for a V-shaped recovery by expressing • Ensure Monster Strike brand positioning our core values (entertainment that brings and maximize the brand’s value people together) at key timings. • Expand on the Monster Strike economic system with a focus on branding Key Timings Anime Anniversary 6-Year New Countdown Anniversary Year Game New Jul-Sep Oct Dec-Jan Games Monster Strike Brand Secret Secret Merchandise Events ©mixi, Inc. All rights reserved. 12 Entertainment Business: Revitalize Monster Strike 1st Quarter Review Planned “Suspense” content to tie in with new characters and enhance their appeal Added collaborations with popular IPs and used MonSpot to collaborate with businesses New Character Tie-ins Collaborations Bleach (May) • “Monster Strike Suspense Theater (20 Million Orb Prize Pool!)” (Jun 20) Promare (June) Yoshinoya (June) • New “Super Transcendence Festival” limited character “Sherlock Holmes” released (Jun 27) ©mixi, Inc. All rights reserved. 13 Entertainment Business: Revitalize Monster Strike 2nd Quarter Initiatives: Increase Active Users Excite users by holding XFLAG PARK 2019 and releasing the transcended forms of popular characters and increase active users with the “Oraflag Event” that encourages playing with friends XFLAG PARK2019 Oraflag Event ©mixi, Inc. All rights reserved. 14 Entertainment Business: Revitalize Monster Strike 2nd Quarter Initiatives: 6-Year Anniversary Countdown Begin the countdown campaign in July for the October’s 6-year anniversary event Aim for a V-shaped recovery by living up 6-year campaign with surprises for users Countdown campaign Tons of orbs giveaway • As the plan for July for Monster Strike’s 6-year anniversary, Monst Prison chief Kurokawa gives out at least 100 orbs New for You*1 limited gacha • A sketch where a user posts their complaints about Monster Strike and gets imprisoned in Monst Prison *1:Limited gacha that guarantees at least one ★6 character that the user doesn’t already have ©mixi, Inc. All rights reserved. Entertainment Business 15 Focus Theme Status (Repost a presentation material for FY2019’s Earnings Result Briefing Session) Revitalize Monster Strike Grow Sports Businesses ©mixi, Inc. All rights reserved. 16 Entertainment Business: Grow Sports Businesses XFLAG SPORTS WEEK Content across multiple genres, spread over a week in August featuring XFLAG’s sponsored teams together: FC Tokyo, Tokyo Yakult Swallows, and Chiba Jets Implemented plans to connect to location information from mobile game app Monster Strike ©mixi, Inc. All rights reserved. 17 Entertainment Business: Other Initiatives Release Decided for New Monster Strike Spin-Off Game Monster Strike spin-off “Monst Dream Company” is planned for release this summer A pull-and-shoot board game that allows simultaneous cooperative play for up to four players for a Monster Strike experience more casual-friendly than the main game The relaxing yet exciting pull-and-shoot board game “Monst Dream Company” ©mixi, Inc. All rights reserved. 18 Entertainment Business: Other Initiatives Game Received from SEGA Games Co., Ltd. Received “the cooperative wordplay RPG Kotodaman” from SEGA Games Co., Ltd. (Q1) Aim for large growth by combining the potential of the long-loved concept of wordplay with the management and marketing experience gained from Monster Strike The cooperative wordplay RPG Kotodaman ©mixi, Inc. All rights reserved. 19 Entertainment Business: Other Initiatives Future Direction of Game Businesses Focus on revitalizing Monster Strike itself, and use assets and know-how from Monster Strike to expand our business portfolio Monster Strike uses New for assets Other IPs such as Kotodaman and know • Marketing officer in charge of the 3rd • Speed up growth by making use of appealing anniversary’s dramatic revitalization now game elements alongside assets and know-how Leadership/ Organization Monster Strike’s new head of operations gained from managing and marketing Monster Changes - • Chain of command of related businesses how Strike also managed by the new head • Games using prominent IPs from other companies and games with external producers Return • Return to original values of “excitement from are under development to Roots playing with friends” • Open users up to, and encourage, spending 3rd anniversary revitalization Strike economic system Strike economic Expand on the Monster on the Monster Expand (Changes in Monster Strike’s quarterly sales) Monster Strike spin-off games • Gain new fans by expanding on the Monster Strike economic system with Monster Strike IP • Expect to take on users who do not enjoy the main game • Products other than Monst Dream Company are FY2016 FY2017 under development ©mixi, Inc. All rights reserved. 20 Entertainment Business: Other Initiatives Commercial Success of the Animation “Promare” “Promare” is an animated feature film made in collaboration with Studio TRIGGER and released nationwide on May 24th It has reached an audience of over 500,000 nationwide and is planned to be shown to 62 countries around the world “Promare” Monster Strike in-app collaboration plan ・Held collaboration event in the Monster Strike app to celebrate “Promare”’s release ・Theaters screening “Promare” distributed ”Pro-dama” that allowed users to use the collaboration gacha for free ©mixi, Inc. All rights reserved. Contents 1. Financial Status 2. Business Status ▪Entertainment Business ▪Lifestyle Business 3. Appendix ©mixi, Inc. All rights reserved. 22 Lifestyle Business FamilyAlbum 1st Quarter Review FamilyAlbum’s users have steadily increased and its Premium service began in April Completed subsidization of SFIDANTE Inc., New Year card service manager in June Plan to develop services together with them and continuously improve monetization Number of FamilyAlbum users Complete subsidization of SFIDANTE Inc. • Producer of multiple app services that allow users to create high- quality New Year cards using photos taken with their mobile devices • Has high quality, a large selection of designs, and has secured an industry-leading number of orders ©mixi, Inc.