Outline of Results Briefing held on Nov 8, 2017

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In 1H FY2018/3, the Company booked net sales of ¥132.0 billion (+24.2% YoY), operating income of ¥25.8 billion (+132.3%), recurring income of ¥26.6 billion (+217.7%), and net income attributable to parent company shareholders (“net income”) of ¥17.5 billion (+218.7%). Overall, both sales and income rose YoY.

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I will next break our results down by segment. The Digital Entertainment segment achieved growth in both sales and income. The top contributor in the HD Games sub-segment was the launch of “DRAGON QUEST XI: Echoes of an Elusive Age.” The sub-segment saw both sales and income grow on the back of brisk repeat sales, especially in the form of downloads of catalog titles. The MMO sub-segment also achieved growth in both sales and income thanks to the release of an expansion pack for “FINAL FANTASY XIV” and the increase that drove in paying subscriber numbers. Both sales and income were likewise up at the Games for Smart Devices/PC Browsers sub-segment, where existing titles continued to perform well. At the Amusement segment, arcade operations remained solid, but both sales and income declined because we launched even fewer new amusement machines than we had the year before. At the Publication segment, both sales and income rose on solid comic book sales. Sales and income also both rose at the Merchandising segment thanks to brisk sales of character merchandise, including the figures bundled with the “FINAL FANTASY XIV” expansion packs. This concludes my overview of our 1H FY2018/3 results.

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