3q fy2012 presentation 0801 d21 finalpdf.irpocket.com/c3624/ja1b/xs2n/hs3k.pdf · ###cogs$ 539$$...

3rd Quarter Financial Result FY 2012

Aug. 1st 2012 AXEL MARK INC.

(TSE Mothers:3624）

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Contents

3Q Summary AffecKons by ending “comp gacha” Comparisons b/w Results and Forecasts of 3Q Financial Results (QoQ) Balance Sheet Quarterly Results Quarterly Results by segments OperaKng Profit by segments Total number of Downloads INDI SOFTWARE Co.,Ltd.

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Ⅱ．4Q Forecast and Strategies -‐-‐-‐-‐-‐-‐-‐-‐ 15

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Ⅲ．Appendix New AXEL MARK Business expansion by M&A Our Focuses Company Overview Our Business Social Game Business Social Game Business Content DistribuKon Business Strategy of Expansions for smart phone Mobile AdverKsement Business Business Domain

4Q Forecast Sales Forecast by segments Comparisons b/w 4Q and 3Q Strategies New Social Game Professional Baseball Chronicle Strategies for Next Year

Ⅰ．3Q Quarterly Report

Ⅰ．3Q Quarterly Report

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3Q Summary

Social Game Business New Kltle“Legions of the sky” got a good start in May. Sales of exisKng Ktles increased slowly. The raKo of sales for smart phone exceeded 50%.

Content Business Sales for feature phone decreased gradually. Sales for smart phone were sKll small.

Acquisi>on INDI SOFTWARE Co.,Ltd. AXEL MARK aquired INDI on June 4th. That enabled us to strength our social game business.

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All rights reserved by AXEL MARK. Information and Statements made in this presentation regarding our current plans, estimates, strategies and beliefs, including forecasts, are forward-looking statements about the future performance of AXEL MARK.

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AffecKons by ending “comp gacha”

■Why were the affecKons very few for our business? 1. Provided alternaKve services quickly. 2. Sales of “Legions of the sky” contributed the increase of our revenue.

・Stop providing “comp gacha” by May 31st. ・The affec>ons on our sales were very few.

＜Monthly Revenue of Social Game Business on 3Q＞

Apr：135mil\　→May：153mil\　→Jun：181mil\

呍呍呍

We will follow the guidelines and regulaKons by CAA*, social game industry organizaKon and SNS plamorm companies. *CAA: Consumer Affairs Agency, Government of Japan


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Comparisons btw Results and Forecasts of 3Q

　Revenue：The sales of Social and Content Biz didn’t reach the forecasts. 　Profit：We reduced hiring costs on 3Q

3Q (9months) Results Forecasts %

Total Revenue 2,877 3,008 95.6%

Opera>ng Profit 230 221 104.1%

Ordinary Profit 228 221 103.2%

Net Profit 193 156 123.7%

3Q (3months) Results Forecasts %

Total Revenue 969 1,100 88.1% Opera>ng Profit 71 63 112.7% Ordinary Profit 68 62 109.7%

Net Profit 59 23 256.5% All rights reserved by AXEL MARK. Information and Statements made in this presentation regarding our current plans, estimates, strategies and beliefs, including forecasts, are forward-looking statements about the future performance of AXEL MARK.

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Financial Results (QoQ)

Million yen 3Q (3months) 2Q (3months)

QoQ amounts % amounts %

Total Revenue 969 100.0 983 100.0 ▲1.4%

COGS 539 55.6 592 60.2 ▲9.0%

Gross margin 430 44.4 391 39.8 +10.0%

SGA 358 36.9 307 31.2 +16.6%

(marke>ng cost) (80) 8.2 (67) 6.8 +20.9%

Opera>onal Profit 71 7.3 84 8.5 ▲15.5%

non-‐opera>onal profit 0 -‐ 4 0.4 -‐

non-‐opera>onal cost 3 0.4 5 0.5 ▲20.0%

Ordinary Profit 68 7.0 82 8.3 ▲17.1%

Net profit 59 6.1 58 5.9 +1.7%

DOWN

DOWN

UP

UP


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Balance Sheet

Retaining loss becomes small by accumula>ng profits.

Million yen FY2012 3Q

FY2011 3Q Million yen FY2012

3Q FY2011 3Q

Current Assets 1,440 1,017 Current liabili>es 468 361 　 Cash 795 767 Accounts payable-‐trade 194 138 Accounts receivable 602 233 Current loan -‐ 155 Others 55 16 Others 273 67 Allowance for doubeul accounts ▲ 12 0 Non current liabili>es 33 -‐ Non current Assets 602 148 Total Liabili>es 502 361 Property, plant and equipments 26 4 　　Capital 563 563 Intangible assets 504 65 　Capital surplus 1,164 623 Investments and other assets 71 78 　Retained earnings ▲ 180 ▲ 376 Lease and guarantee deposits 68 207 Total shareholders equity 1,541 804

Others 3 20 Total liabili>es and net assets 2,043 1,166

Allowance for doubeul accounts -‐ ▲ 148 Total Assets 2,043 1,166 Capital ra>o 75.4% 69.0%


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Quarterly Results

3Q(9months ended) Record-‐high Revenue and OperaKng Profit

Million yen 1Q 2Q 3Q 3Q

(9months ended)

Total Revenue 924 983 969 2,877

Opera>ng Profit 74 84 71 230

Profit Ra>o 8.1% 8.5% 7.3% 8.0%


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Quarterly Results by segments

15.4%

22.7%

2.8% 924

983 969


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OperaKng Profit by segments

Million yen Social Game Content Adver>se

ment Head

Quarters Total

Revenue 1,138 1,091 660 ▲12 2,877

Opera>ng Profit 188 180 33 ▲171 230

Profit Ra>o 16.5% 16.5% 5.0% -‐ 8.0%

FY2012 3Q (9 months ended)


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Total number of Downloads

Units: thousands

1,300

1,480 1,610

「Kingdom Chronicle」 Launch :9/8/2011

「Osama Game」 Launch:11/28/2011

「Adventure Chronicle」 Launch:3/2/2012

Sep. 2011 Oct. 2011 Nov. 2011 Dec. 2011 Jan. 2012 Feb. 2012 March. 2012 April. 2012 May. 2012 June. 2012

「Legions of the sky」 Launch:5/10/2012

90 160

330

1,120

950 840

670


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会社名 INDI SOFTWARE Co.,Ltd.

RepresentaKve President Notsu Koji

Business Content Business, other business

Capital 199mil yen

establishment 10/29/1999

employments 30（As of June 30th 2012）

To acquire engineer resources To strength our development To expand global acKviKes

INDI SOFTWARE Co.,Ltd.

AcquisiKon of INDI SOFTWARE


Ⅱ．4Q Forecast and Strategies

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4Q Forecast

FY Ended Sep.31th 2012 FY2012 consolidated

FY2011 Non consolidated

YoY

Total Revenue 4,007 1,231 3.2x

Opera>ng Profit 272 11 24.7x

Ordinary Profit 270 4 67.5x

Net Profit 216 ▲32 -‐

4Q (3months) 4Q Forecast 3Q %

Total Revenue 1,130 969 116.6% Opera>ng Profit 42 71 59.2% Ordinary Profit 42 68 61.8%

Net Profit 23 59 39.0%


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Sales Forecast by segments

Social Game keeps growing and drives the growth of total revenue.

924 983 969

Unit: million yen

1,130


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Comparisons btw 4Q and 3Q

The revenue of Social Game will increase steadily. Investments for future growth of Social Game Business

Million yen 4Q 3Q Changing Factors

Revenue 1,130 969 Social Game ＋179mil\ Content 　　　　 ▲20mil\ AdverKsement 　＋ 2mil\

Opera>ng Profit 42 71 HR cost, rent fees and promoKonal cost will

increase.


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Strategies

Focus on Large-‐scale IP >tle

Go Global

”Professional Baseball Chronicle“ Launched in July 17th

PreparaKons for collaboraKve Ktles (will be launched in fall)

Our big-‐hit Ktle “ Kingdom Chronicle” will be launched for mobage games, mobage global plamorm, in fall.


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New Social Game

Service launch: July 17th 2012

Smart phone Feature phone

▼ 『Professional Baseball Chronicle』 URL For SP　　 hrp://sp.pf.mbga.jp/12010138 For FP hrp://pf.mbga.jp/12010138

All rights, except the photos of baseball players, reserved by AXEL MARK. Information and Statements made in this presentation regarding our current plans, estimates, strategies and beliefs, including forecasts, are forward-looking statements about the future performance of AXEL MARK.

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Professional Baseball Chronicle Baseball Card-‐Barle game produced by Fuji TV Network and AXEL MARK Officially Authorized By NPB (Nippon Professional Baseball) More than 1,000 over photographed cards of acKve players, coaches and commentators

Title　：Professional Baseball Chronicle Partner 　：Fuji Television CooperaKon 　：”Pro-‐Yakyu News” (Professional Baseball News) Devices　　　：Smart phone, Feature phone Service Launch ：7/17/2012 Plamorm 　　：mobage

CollaboraKon events with “Pro-‐Yakyu News” will start in September.

Professional Baseball Chronicle


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Strategies for Next Year

[Social Game Business] AXEL MARK will launch “Kingdom Chronicle” for mobage games

[Social Game Business] AXEL MARK will make some partnerships with alliance companies for launching IP Ktles.

[New AcKviKes for Asian market] AXELBEAT will develop new business in Asia.

New Challenges for global markets


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Appendix

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New AXEL MARK

Strength: MarkeKng,

Content distribuKon

Strengths: Content Development

Connect Users to Contents

AXEL MARK merged with FROUTE CorporaKon at October 1st 2011.


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Business expansion by M&A

Overseas

Domes>c

Feature Phone Smart Phone

Content distribu>on business

Adver>sement business

Social game business

Overseas business

Expanding our business By the merger


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Our Focuses

・Global Provide Search Engine and social games

・Social 　Social network games for mobage

・Smart phone 　Contents distribu>on for smart phone.


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Company Overview

Company Name

Business

Capital

President

Head Count

Subsidiaries

Stock code

AXEL MARK INC.

Social Game, Content distribuKon, Mobile AdverKsement

563 million yen (As of June 30th 2012)

Junji Oshita

Address Harmony Tower, 1-‐32-‐2 Honcho, Nakano-‐ku, Tokyo, Japan

134 (consolidated, as of June 30th 2012)

FROUTE RECS (Social game), INDI SOFTWARE (Social game) AXELBEAT (Overseas business)

3624 (Tokyo Stock Exchange Mothers SecKon)


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Our Business

•  Card Battle,5 titles for mobage

Social Game Business

•  Distribute music, movie, comic, and fortune-telling for smart phone and feature phone

Content Distribution Business

•  AD network for mobile (smart phone and feature phone) •  Provide search engine for oversea carriers

Mobile Advertisement Business


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Kingdom Chronicle

Osama Game

Adventure Chronicle

Legions of the sky

Card-‐Bajle Game for mobage (original design, real-‐>me bajle)

Service Launch：5/10/2012


Card-‐Bajle Game for mobage (original design, adventurous story)

Card-‐Bajle Game for mobage (originated by thumb novel “Osama Game”)



Card-‐Bajle Game for mobage (original design, quest)


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Professional Baseball Chronicle Baseball Card-‐Barle game produced by Fuji TV Network and AXEL MARK Officially Authorized By NPB (Nippon Professional Baseball) More than 1,000 over photographed cards of acKve players, coaches and commentators

Title　：Professional Baseball Chronicle Partner 　：Fuji Television CooperaKon 　：”Pro-‐Yakyu News” (Professional Baseball News) Devices　　　：Smart phone, Feature phone Service Launch ：7/17/2012 Plamorm 　　：mobage

CollaboraKon events with “Pro-‐Yakyu News” will start in September.



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Content DistribuKon Business

DistribuKon for smart phone and feature phone

Entertainment Contents for Feature Phone Music, Movie, Comic, and Fortune-‐telling

eBook Service for smart phone

Entertainment Contents for Smart phone Comic and Fortune-‐telling


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Strategy of Expansions for smart phone

The expansion depends on the anKcipaKon of market growth

Feature Phone Smart phone

Music

Comic

eBook

Fortune-‐telling

Movie

Music

Comic

eBook

Fortune-‐telling

Movie


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Mobile AdverKsement Business

AD network

Content Search

Adver-‐Ksers AD

agency ・SelecKon of opKmum adverKsing method ・SelecKon of most suitable media Tie-‐up media

12,000+

Music sites Gewng music easily!

Other portal sites


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Business Domain

ProducKon Packaging MarkeKng DistribuKon Users Contents

Social game

Mobile adver>sement

Contents distribu>on

Overseas

Connect Users and Contents


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Connect Users and Contents

3q fy2012 presentation 0801 d21 finalpdf.irpocket.com/c3624/ja1b/xs2n/hs3k.pdf · ###cogs$ 539$$...

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