Outline of Results Briefing held on November 6, 2014

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This is the trend in the content production account balance.
As I already mentioned, content and extensiveness are significant elements of the content production account. We are currently developing a variety of titles as we believe now is the time to take an aggressive stance. As a result, the balance is on an increasing trend.
One of the reasons for the balance increase is the weak yen, which has also been clarified in recent briefing sessions. This essentially has limited impact on our business operations, since we do not use yen funds to finance development in the overseas studios. However, in terms of balance sheet consolidation, which requires exchange of British pound amount into yen, the yen’s steep depreciation causes negative impact inflating the balance. I hope this was helpful to understand the factors behind the increase in the content production account balance.

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In the Amusement segment, store operations were affected by the recent consumption tax increase. Our downtown locations are performing solidly, however stores located in shopping malls were strongly affected by the decline of customer turnout to the malls. Having accumulated various efforts for efficient store operations, this segment was able to secure stable results profit-wise. We will engage in new challenges and initiatives to attract an even wider range of customers. For example, foreign tourists vising Japan have been increasing due to the weak yen. We have also seen more foreign tourists visit our arcade stores and actively play our games. We have installed ATM machines to increase convenience for customers, which will also help to attract foreign visitors. As for amusement machines, “LEFT 4 DEAD –SURVIVORS-,” is planned for release in Winter 2014. Finally, a few words on upcoming business plans in the Amusement segment. The LIVE game that I mentioned a few moments ago also has affinity to the Amusement business. We will continue to engage in various initiatives in the second half of FY 2015/3 and in shaping the arcade business to fit with the current times.

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Here is the Publication segment. This fiscal year lies in between harvest seasons, as many titles have ended their publication series. We expected severe results, however some titles adapted to television anime series have become smash hits, and we are exceeding projected plans.

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