Outline of Results Briefing held on November 6, 2014

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As the ratio for download sales improve, catalog sales will increase. Constant sales of catalog titles will make it easier for the customers to have access to them for purchase. The penetration of download sales also increases opportunities to sell catalog titles directly to the customers, which have been lost to the secondhand market, and contribute to building repeat sales. As we are trying to secure profit through utilizing stock of past titles, profitability of HD games must now also be considered over a certain time frame. It is not easy to recoup development costs solely by initial sales, however download sales will allow us to increase profit in a long tail manner.

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Next I would like to explain the progress in each business segment.

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In the Digital Entertainment segment, the Company will continue to focus on new titles for smart devices. In our effort to expand our business overseas largely in Asia, “FINAL FANTASY XIV: A REALM REBORN” was launched in China and several games for smart device have delivered favorable results. I will introduce these titles to you later. For title production in our domestic and overseas studios, we have enhanced investment in game development in order to establish an extensive and rich pipeline, as we believe the current business environment calls for us to be on the offense.

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This slide shows major smart device titles sorted in accordance with F2P-basded native app game sales ranking.

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