Outline of Results Briefing held on November 6, 2015

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As I mentioned a moment ago, we have developed the MMO sub-segment into a stable earnings generator. We released expansion packs for FINAL FANTASY XIV and DRAGON QUEST X in 1Q and have seen a steady trend in subscriber numbers. By taking a proactive approach to this business—including in terms of releasing expansion packs and other updates—we will maintain or expand the number of our active users and further strengthen this business as an earnings generator.

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On the whole, our Games for Smart Devices/PC Browsers delivered a strong performance in both 1Q and 2Q. 2Q saw the launch of MOBIUS FINAL FANTASY, which is performing very well thanks to a great reception from players. That said, some of our titles struggled in the face of mounting competition. For such games, we have tried to make timely decisions on whether to take remedial steps or to discontinue service of the game, always keeping in mind how best to serve our customers. These are the games on which we decided to recognize valuation losses sooner rather than later for accounting purposes.

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This slide shows the main titles for Smart Devices/PC Browsers we currently offer. Many of these titles leverage existing IP, but going forward we would like to be more proactive in offering games featuring new IP. We plan to launch several such titles in 2H. Among our recent launches, we have had great feedback from the market on HOSHI NO DRAGON QUEST, FINAL FANTASY BRAVE EXVIUS, and FINAL FANTASY GRAND MASTERS.

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I will move on to the Amusement segment. Brisk sales of game machines a year earlier made for a high hurdle, resulting in a decline in the segment’s net sales and net income in 1H YoY. However, new DISSIDIA FINAL FANTASY game machines will begin going into use as of November 26, and our customers are very enthusiastic about them. I note that the arcade industry as a whole continues to struggle. However, thanks to Taito moving relatively quickly to improve efficiency and to a demand boost from foreign tourists in Japan, business at our amusement facilities has been brisk.

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