Financial Results of Q1 FYE September 2016 · Overview of Q1 (Oct 2015- Dec 2015) 3 The first quarter of FYE Sept 2016 has been quite profitable as sales of native social games continue

Connecting Markets East & West

Copyright © IGNIS LTD. All Rights Reserved.

Opinions, forecasts and other forward-looking statements included in these documents represent the judgment of IGNIS Ltd. at the time that these documents were created,

and no guarantee is made as to the accuracy of the information contained in those statements. Please be aware that there may be large variations between the contents of

forecasts and the actual financial results, for any number of reasons.

February 12, 2016

IGNIS LTD.

Financial Results of Q1 FYE September 2016


Table of Contents

Ⅰ. Overview of Q1 FYE Sept 2016

Ⅱ. Forecast for FYE Sept 2016

Ⅲ. Progress on business and strategies for growth


Ⅰ. Q1 FYE Sept 2016 Results


Overview of Q1 (Oct 2015- Dec 2015)

3

The first quarter of FYE Sept 2016 has been quite profitable as sales ofnative social games continue to be strong, posting profits for twoconsecutive quarters !

（ Unit: Million,％）

FYE Sept 2016 Q1

QoQ YoY

Sales 1,321 +1.7% +443.8%

Free Native Apps 142 -24.9% -40.7%

Native Social Games 1,179 +6.3% +48027.0 %

Operating Profits 409 +49.2% -

Operating Profit Margin 31.0% -

Ordinary Profit 405 +64.1% -

Ordinary Profit Margin 30.7% -

Net Profit 230 +68.8% -

Net Profit Margin 17.4% -Number of Releases During Q1

7 8 -

※ As the conventional sales of "Free Content Model 'Hybrid' Apps" were already included under "Free Native Apps", we have decided to use only 2 genres of "Free Native Apps" and "Native Social Apps" going forward.

FYE Sep 2015 Q4

FYE Sep 2015 Q1

1,299 243

190 240

1,109 2

274 △101

21.1% -

247 △117

19.0% -

136 △89

10.5% -

8 8


522

737

243 263

613

1,299 1,321

219 211

(101)(140)

(70)

274

409

42.1

28.6

21.1

31.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

(400)

(200)

0

200

400

600

800

1,000

1,200

1,400

1Q 4Q 1Q 2Q 3Q 4Q 1Q

FYE Sep. 2014 FYE Sep. 2015 FYE Sep. 2016

Net Sales Operating Profit

Operating Profit Margin

Overview of Q1 (Oct 2015-Dec 2015)

4

Net sales and operating profits for the quarter are at a record high after the listing on the Tokyo Stock Exchange. The turning point was due to the renewal type apps that allowed for further growth

Turning

Point

（Unit：Million yen）（Unit：%）Growth

trajectory


FYESep.2013

FYESep.2014

FYESep.2015

FYESep.2016

Others 46 63 65 48 97 103 107 172 128 104 110 134 145

Comission 8 4 6 7 7 10 14 15 15 21 24 26 28

Rent etc. 1 9 18 16 16 16 16 16 50 63 63 64 57

Platform Charge 0 0 2 1 20 51 42 23 0 27 132 321 332

Advertisement &Promotion

6 17 59 40 116 75 17 185 20 59 222 350 210

Recruitment 0 0 0 1 13 9 14 8 11 7 6 0 5

Personnel 27 31 37 42 48 70 89 104 117 119 124 126 131

0

200

400

600

800

1,000

1,200

Expense Analysis

5

As sales of native social games remain strong, advertising expenses and PF fees still take up a big portion of company expenses even though the expenditures for advertising slightly decreased during Q1.

※Includes depreciation and amortization expenses for HQ facilities

（ unit:million yen）


Ⅱ. Forecast for FYE Sept 2016


2,014

2,419

3,500

4,000

1,321

FYE Sep. 2014Actual

FYE Sep. 2015Actual

FYE Sep. 2016Forecast

FYE Sep. 2016Revised Forecast

Reference：FYE

Sep. 2016 Q1Actual

Revised Full-Year Forecast for FYE September 2016

7

Based on 1.32 billion yen consolidated net sales in Q1, our sales forecast was revised upwards from the initial 3.5 billion yen to 4.0 billion yen!

（Unit：Million yen）


561

(38)

409

700

545

(148)

405

700

309

(306)

230

550

(400)

(200)

0

200

400

600

800

FY2014 FY2015 FY2016 Q1 Actual FY2016 Forecast

Operating Income Ordinary Income Net Income

FYE September 2016 Full-Year Profit Forecast

8

Our predictions of record high profitoperating profit:700 million yen, ordinary profit: 700 million yen,

and net income: 550 million yen

（Unit：Million yen）


Ⅲ. Progress on Business and Strategies for Growth


Medium to Long-Term Goals

10

Aspiring to develop products that will become the “ next standard ” used by a hundred million people and more, we will undertake a new stage of challenges

2012～2015

Currently, we are here

Incom

e E

xp

an

sio

n

Creating new standards, over and over again

Develop products that will achieve 100 million

downloadsDevelop products that will achieve 10 million

downloadsDevelop products that will achieve 1 million

downloads


Business Strategy Points for September 2016

11

Free Native Apps

Native Social Games

To constantly improve applications by strengthening the operations of renewal type apps (especially in the communication genre)

Strengthen the development and operation system of "BOKU & DRAGONS". Focus on expanding income through promotions besides internet advertising


May Jun Jul Aug Sep Oct Nov Dec Jan Feb

2015 2016

breaker Japan breaker outside Japan destroyer Japan

Free Native Apps ① -“breaker”-

12

“breaker” has achieved 1M DLs globally! The success is mainly due to the long-term revenue generated from the application updates, expansion abroad, and release of “destroyer”, a spin-off of the popular game.

Domestic

version

Update

Korean Language VersionRelease

Overseas Release

Domestic

version

Update

Total DLs for the “breaker” series.

Spin-off

Release2/1 release of “destroyer”for the Android

Domestic IOS Release

Domestic Android Release


Free Native App ② -“Hima Chat”-

13

Over a billion messages has been sent as of December 2015 with 1 million accounts and counting already in use! Our operations in the future aims to achieve 2 billion messages by April 2016 by furthering our knowledge of the operations of the user community.

Measurements of active communication which were carried

out during Q1

The introduction of "Hima Point" can be used to improve the features

within the app

Held a Christmas networking event for singles

We will be implementing new initiatives going forward!


Free Native App ③ -“with”App Release

14

Under the careful supervision of Mentalist DaiGo, “with”incorporatespsychology and statistical methods for dating and match-making for this soon-to-be released app for the iOS.

(Source: Aug 2014, Seed Planning, Inc. "Online Marriage and Romance Matching Service" （＊）market estimate. )

（Unit：100M）

iOS version released soon! (and the Android version to follow)

Market size estimation of potential users

3036 41

4855 58

16

23

47

58

6570

0

20

40

60

80

100

120

140

2012 2013 2014 2015 2016 2017

Online Matchmaking Online Dating Service


0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

6/1 6/21 7/11 7/31 8/20 9/9 9/29 10/19 11/8 11/2812/18 1/7 1/27

Android iOS

1

0

500

1,000

1,500

2,000

2,500

3,000

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

2015 2016

Android

iOS

Native Social Game ① Performance of “BOKU & DRAGONS”

Total Number of Monthly DLs

15

Trend of Domestic App Store Sales Rankings

940,000

1.71 million

Top 50 in Android sales for 257 days and counting since May 29th,

2015.

※As of February 9, 2016

Sales of “BOKU & DRAGONS” continues to remain strong and is still in the top 50 games in the app store for the Android.

2015 2016


Native Social Game ② Event Management

16

To celebrate the 1 year anniversary of “BOKU & DRAGONS”, we will hold a large-scale event mid-February! We will also focus on planning more events and collaborations in the future.


Native Social Game ③ Overseas Distribution

17

The Traditional Chinese version of “BOKU & DRAGONS” is currently in circulation in Taiwan, Hong Kong, and the Macau markets. In the future we will proceed to distribute into other overseas countries as well.


Other –Acquisition of U-Note and Sale of M.T. Burn-

18

U-NOTE, a consolidated subsidiary of IGNIS beginning from October 2015 is a curation media with a business concept of “Making work fun and making every day cool”.

M.T. Burn, a business operating company for native ads for smartphones, was established In December 2013 in joint-cooperation with Freakout(50% shareholding by IGNIS) . In February 1, 2016, IGIS sold all of the its shares back to Freakout, and in Q2, forecasts to report 590 million yen of extraordinary income on a consolidated basis.


Business Model

1919

Advertising Model

Billing Model

Non-GamesGames

IGNIS

We will continue to place emphasis on two types of revenue streams that focus on ‘games with billing’, and ‘non-games with advertising’ and accelerate growth.


【Appendices】


Company Information

21

Company Profile Investor Information

Company Name Ignis LTD.

Founded May 31, 2010

Company

Representatives

President and CEO Qian Kun

Representative Director and CTO

Takaaki Suzuki

Headquarters Ebisu Business Tower 12th floor, 1-

19-19 Ebisu, Shibuya-ku, Tokyo

Capital 562,641,000 yen（As of 12/2015）

Headcount 116（As of 12/2015）

Primary

Businesses■Mobile app business:

Design, development, operation and

sales of smartphone applications

■Game business:

Design, development, operation,

and sales of social games for

smartphones

Stock Market Tokyo Stock Exchange

Mothers

Stock Code 3689

Date of Listing July 15, 2014

End of Fiscal Year September 30

Reference Date On September 30, annually

Reference Date of

Surplus-DividendMarch 31, September 30

Total Number of

Authorized Shares6,000,000,000 shares

Total Number of Shares

Issued6,133,700 shares (as of Dec.

2015)

Ordinary General Meeting

of ShareholdersEvery December

Administrator of

Shareholder RegistryMitsubishi UFJ Trust and

Banking Corp.

IGNIS LTD. primarily focuses on creating new user experiences

for smartphone apps


Corporate Vision and Mission

22

Vision

ミッション


What IGNIS has created so far

23

Native Social Games

-Billing Revenue-

“BOKU & DRAGONS”Feb 20th 2015, Android version releasedMar 12th 2015, iOS version releasedJun 26th 2015, 1million DLs achievedSept 20th 2015 2million DLs achieved

We provide valuable free native apps to our users, which generates our main source of revenue from advertising. We also provide billing-type native social games .

Trend of Apps(Android) Trend of apps (iOS)

0

20

40

60

80

100

120

140

Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.

2012 2013 2014 2015

Others

Tools

Communications

Social Games

Comics

Casual Games

0

50

100

150

200

250

Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.

2012 2013 2014 2015

Others

Tools

Communications

Social Games

Comics

Casual Games

Free Native Apps-Advertising Revenue (Some Billing Revenue)-


78,182

80,655

82,995

84,233

85,567

87,027 90,036

91,783

93,193

95,002

96,071

97,479

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2015

Trend of User Downloads

24

The apps IGNIS has developed are appreciated by our users and downloads have been steadily growing

（Unit: thousand DLs）

Reached about 100M DLs and counting！


MAU trend of free native apps

25

Although MAUs ( ※１）are gradually declining due to a reallocation of our development resources, we regard it as a necessary sacrifice in order to make significant breakthroughs in our business.

※the number of users who used our free native apps at least once in a month

（Unit：thousand users）

Trend in MAU of free native apps (including overseas entities)

8,832

7,676 7,841

8,330

7,757

7,810 7,309

7,157 6,749

6,592 6,311

5,658

5,653

5,258

5,284

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2015


Our Business Model

26

Apps are provided to users through the Apps Store and Google Play. Revenue comes from advertisements listed in the apps and billing within the apps.


The data included in this presentation includes what is known as

"forward-looking statements". These are based on estimates,

forecasts and assumptions about risk made at the present date

which include a level of uncertainty that means that actual future

results may differ from the contents of the “forward-looking

statements".

These risks and uncertainties include the general economic situation

in Japan and overseas, including the market situation, interest rates,

and currency fluctuations affecting the industry as a whole.

IGNIS takes no responsibility for updating or revising these forward-

looking statements in response to any future events or other new

information that may emerge in the future.

※ * Disclaimer:

Warnings in relation to forward looking statements

Documents

Financial Results of Q1 FYE September 2016 · Overview of Q1 (Oct 2015- Dec 2015) 3 The first quarter of FYE Sept 2016 has been quite profitable as sales of native social games continue