Investor Presentaiton
COGS and SG&A1
(Unit: \ millions)
FY2020
FY2021
Q1
Q2
Q3
Q4
Q1
1
Total Cost of Revenue
¥15,343
¥14,574
¥19,266
¥19,826
¥18,699
Royalty 2
5,738
5,074
9,618
7,406
7,977
HR cost (COGS) ³
3
6,443
6,429
6,241
8,929
7,281
Other (COGS) 4
3,162
3,071
3,407
3,491
3,441
Total SG&A 1
20,614
22,922
29,659
30,516
26,317
HR cost
3,907
4,260
3,968
6,912
6,582
PG fee 5
6,696
7,486
12,311
8,881
8,299
R&D
3,907
4,093
4,490
4,054
4,976
Marketing/advertising expenses
2,836
4,326
5,852
7,401
3,132
Depreciation and amortization
1,299
1,236
1,319
1,398
1,453
Other
1,969
1,521
1,719
1,870
1,875
Other Income 6
Other Expense
7
Includes: impairment loss
1,197
101
294
204
124
6,459
360
3,174
657
100
6,063
251
3,015
326
19
1 Breakdown of COGS and SG&A are unaudited.
2 Royalty includes royalties paid to third-party developers in order for
us to obtain the right to publish their games.
3 HR cost includes salaries, bonuses and benefits for our live
game developers, who support post launch servicing, updating
and support for our games..
4 Other (COGS) primarily consists of depreciation and
amortization of assets related to existing games,
connection fees (mainly comprised of co-location and
datacenter fees, internet bandwidth and access fees),
and the costs of purchasing and maintaining our
servers and computer equipment.
5 PG fee in SG&A includes commissions made to
external payment gateway companies when users
purchase in-game items in PC Online games that we
service. It also includes mobile carrier-related
commissions we pay regarding our Japanese mobile
browser games, commissions we pay to
Apple/Google regarding our mobile native games
globally, and platform commission fees related to
mobile browser games.
6 Other Income includes other non-operating income,
reversal of deferred revenue, gain on sale of properties,
gain on change in equity.
7 Other Expense includes other non-operating expenses, loss on
sale/disposal of properties, loss on impairment of tangible fixed
assets, loss on impairment of intangible assets, loss on
impairment of other fixed assets and loss on change in equity. It
also includes impairment loss of game IPs and goodwill.
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