Outline of Results Briefing held on May 12, 2016

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This slide lists our top-ranked titles. Grimms Notes is new IP, and we see the fact that we were able to place it in the upper end of the rankings as soon as it launched without engaging in significant marketing spending as a major accomplishment.

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At the Amusement segment, sales of DISSIDIA FINAL FANTASY arcade machines have topped 3,000 units, and revenue generation is also quite strong. E-money and spending by foreign tourists have been the major drivers of arcade operations. Growth in e-money payments has been particularly marked since our arcades began accepting payment from public transit smart cards. Making our arcades more convenient for customers is key, so we will continue to promote the acceptance of e-money.

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This slide shows our primary lineup of arcade machines for FY2017/3. DRAGON QUEST MONSTER BATTLE SCANNER, which is designed to be the centerpiece of our DRAGON QUEST 30th anniversary commemorations, is slated for a summer 2016 launch.

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Net sales and net income declined in FY2016/3 at the Publication segment. Exposing our comic titles across multiple media platforms had resulted in brisk sales in the previous term, but that created a hurdle that proved insurmountable. We intend to continue with our strategy of growing sales of our comic titles by adapting them into TV animation series. We see the Publication segment as a fertile ground for growing IP, and we believe that it will be an appealing business that extends beyond the confines of print media. I want the Company as a whole to give serious thought to how best to leverage it.

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