Outline of Results Briefing held on November 6, 2014

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(Continued from previous page.)*

In this FY2016/3, we are planning to launch amusement game machines of “School of Ragnarok,” and “DISSIDIA FINAL FANTASY,” The amusement business is an important platform for us, where we can offer customers the “live” experiences. Today, it has become easier for us to offer our customers the “live” experiences compared to the past, precisely because we are in the day and age of the internet. By offering new gaming experiences like e-sport, we will pursue breakthroughs in the amusement business.

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In the Publication segment, e-books are growing, as we explained in the past. For e-books, we are getting a lot of business inquiries from overseas, mainly Asia, so we plan to focus on expanding the business overseas hereafter. We were initially positioning FY2015/3 to be the year of preparation. However, popular comic series adapted for television anime series showed surprisingly strong sales, notably “BARAKAMON,” “GEKKAN SHOJO NOZAKI KUN,” and “Akame ga KILL!” We believe preparations will continue in FY2016/3, but as we work on such efforts, we also plan to publish hit titles and achieve strong earnings.

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Now, let me move on to our forecasts for FY2016/3.

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We have set a range of ¥200-220 billion in net sales, and are aiming to exceed the ¥200 billion mark for the first time in our history. While we expect the aforementioned tail wind in the market environment, we expect the competition to be intense in HD games and games for smart devices. On top of this, we will have to bear HD games’ heavy depreciation burden in the year of launch. Development costs for smart device games are gradually increasing, too. Based on these factors, we expect our operating income to be between ¥17-25 billion.

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