Outline of Results Briefing held on May 12, 2016

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In FY2016/3, the Company booked net sales of ¥214.1 billion (+¥46.2 billion YoY), operating income of ¥26 billion (+¥9.6 billion), recurring income of ¥25.3 billion (+¥8.3 billion), and net income attributable to parent company shareholders of ¥19.9 billion (“net income,” ¥10.1 billion). Both sales and income rose sharply on the whole, with net sales and net income reaching all-time highs.

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I will next break our results down by segment. The Digital Entertainment segment saw a sharp rise in both net sales and net income. Let’s take a closer look at that, breaking the segment down into its three sub-segments. The HD Games sub-segment released RISE OF THE TOMB RAIDER in November and JUST CAUSE 3 in December, with both major titles contributing to earnings. The MMO sub-segment saw a significant contribution from expansion packs released in 1Q FY2015/3 (“the previous term”). Subscription revenue from game operations was also solid, serving to underpin earnings. The Games for Smart Devices/PC Browsers sub-segment saw earnings contributions not only from existing titles, but also from new titles launched in FY2016/3, includingMOBIUS FINAL FANTASY, HOSHI NO DRAGON QUEST, FINAL FANTASY BRAVE EXVIUS, and Grimms Notes, all of which are enjoying high chart rankings. That concludes my breakdown of the Digital Entertainment Segment.

Next, I turn to the Amusement segment, which saw a slight increase in net sales and net income. The arcades operated by Taito are showing solid performances, and new arcades such as the Omiya location are off to strong starts. Sales of DISSIDIA FINAL FANTASY arcade machines were also brisk.

At the Publication segment, net sales and net income were down, but this owed to a high hurdle set by brisk sales in the previous term of comic titles that were adapted into animated TV series.

The Merchandising segment saw both net sales and net income rise, thanks in part to brisk sales of character merchandise associated with the release of the FINAL FANTASY XIV expansion pack. This concludes my overview of FY2016/3 results.

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