Outline of Results Briefing held on November 8, 2016

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At the non-operating line, we booked foreign currency exchange losses of ¥2.8 billion in conjunction with assets denominated in foreign currencies such as our foreign currency reserves and foreign currency-denominated trade receivables.

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Our content production account stood at ¥47.2 billion as of the end of 1H FY2017/3. Approximately 80% of that is accounted for Japanese titles, including “FINAL FANTASY XV,” which is slated for release in November. Because 1H FY2017/3 saw the release of the major titles that had been under production in the West, Japanese titles are set to account for a larger portion of our pipeline as of FY2018/3.

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Next, I’ll be discussing developments at each of our business segments.

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The key HD game titles released by the Digital Entertainment segment in 1H FY2017/3 were “DRAGON QUEST HEROES II,” “DEUS EX: Mankind Divided,” and “HITMAN.” We released “HITMAN” in episodic installments. The first season concluded at the end of October, and we have switched to offering full-package downloads. We also plan to sell the full season on disk as of January.

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