Outline of Results Briefing held on November 6, 2014

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(Continued from previous page.)*

The Publication segment achieved growth in both net revenue, which was ¥11.5 billion, and operating income, which was ¥3.2 billion. Popular comic series adapted for television anime series showed strong sales, notably “BARAKAMON,” “GEKKAN SHOJO NOZAKI KUN,” and “Akame ga KILL!” The Merchandising segment also enjoyed growth in both net sales and operating income, to reach ¥4 billion and ¥1.2 billion, respectively. Together with the Group’s own IP, we were licensed third party content and are promoting the merchandising of third-party character under license.

As a result, we achieved growth in both consolidated sales and income.

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This is the content production account balance.
The balance was ¥35.1 billion at the end of FY2015/3, and we booked ¥8.4 billion of loss on valuation of inventories.

That concludes the overview of the financial results.

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This is Yosuke Matsuda, President. I will explain the future business outlook, as well as our strategies.

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In the console market, PS4 seems to be doing especially well, mainly in the West. We believe both PS4 and Xbox One are continuing to grow. We contributed to enhancement of the domestic PS4 market through the launches of “DRAGON QUEST HEROES,” and “FINAL FANTASY TYPE-0 HD,” which encloses the trial version of “FINAL FANTASY XV,” However, we expect the Western markets to remain the key growth areas. The smart device market is also continuing to expand. However, the number of players in the market is also increasing, mainly in the domestic market, making the competition extremely intense.

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