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transcript
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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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
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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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
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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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%
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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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%
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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Quarterly Results by segments
15.4%
22.7%
2.8% 924
983 969
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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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)
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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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
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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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
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.
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%
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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Sales Forecast by segments
Social Game keeps growing and drives the growth of total revenue.
924 983 969
Unit: million yen
1,130
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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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.
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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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.
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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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
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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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
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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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.
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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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
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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Our Focuses
・Global Provide Search Engine and social games
・Social Social network games for mobage
・Smart phone Contents distribu>on for smart phone.
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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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)
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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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
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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Social Game Business
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
Service Launch:3/2/2012
Card-‐Bajle Game for mobage (original design, adventurous story)
Card-‐Bajle Game for mobage (originated by thumb novel “Osama Game”)
Service Launch:11/28/2011
Service Launch:9/8/2011
Card-‐Bajle Game for mobage (original design, quest)
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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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.
Social Game Business
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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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
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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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
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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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
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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Business Domain
ProducKon Packaging MarkeKng DistribuKon Users Contents
Social game
Mobile adver>sement
Contents distribu>on
Overseas
Connect Users and Contents
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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Connect Users and Contents