Outline of Results Briefing held on November 6, 2015

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(Continued from previous page.)*

Taito has been working hard at installing equipment that accepts e-money payments. Recently, it has become possible to also accept payment from the smart cards used on public transit systems, which has increased e-money usage significantly. We will continue our efforts in this area in 2H so that we can continue to move away from the traditional coin-based business model.

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Next, I turn to the Publication segment. Earnings in 1H last year were boosted by an increase in the sales of comics that had been adapted for television. With the lack of such a boost this 1H, we saw a decline in net sales and net income for the segment. However, we have produced some hit titles and have high hopes for the way ahead. Our discussions with China’s NetEase regarding a potential tie-up in the publication business have resulted in a decision to start offering our e-comics on the Chinese mainland. While we do not expect this to result in major earnings instantly, the success of Kaku-San-Sei Million Arthur and CROSS GATE has demonstrated the strong demand for Japanese content in China. As such, we intend to proactively expand our business in the Chinese market.

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I next refer to the appendix of our presentation deck.

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We maintain our initial guidance for FY2016/3 taking into account some factors such as a lack of visibility surrounding sales trends for HD games.

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