Outline of Results Briefing held on November 8, 2016

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This slide lists our titles that have achieved high chart rankings.

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Here we show the releases we have planned for 2H FY2017/3. Some of the titles have already been launched, but we intend to revisit carefully the remaining titles in terms of both their contents and development status in order to ensure that they are released in prime condition. This may result in the rescheduling of some launches.

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I would next like to look at the Amusement segment. Same-store arcade sales were strong, YoY sales was more than 100%. We believe this owes in part to Taito’s ongoing rollout of its e-money payment system, which has enhanced customer convenience. As such, we intend to continue to make paying easier going forward. In an initiative related to our arcade network, we opened the STORIA game café at our arcade on the western side of Tokyo’s Ikebukuro Station. We created STORIA as a venue for streaming live gaming. Our hope is to have visitors experience the excitement of live gaming and to thereby bolster our future earnings and sales.

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The Publication segment saw both net sales and operating income decline YoY due to a gap between the production of animated television series. However, as of 2H FY2017/3, you will begin to see a string of releases that we have been working on since FY2016/3. As a general market trend, print media is struggling, but we are working proactively not only by shifting to digital but also by developing new IP-leveraging businesses. We garnered significant attention at the Tokyo Game Show for our display of VR manga contents. We see this as a new format for comics and hope to be able to offer it as a product early in FY2018/3.

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