Outline of Results Briefing held on Nov 8, 2017

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I turn next to the MMO sub-segment, where 1H saw the release of the “STORMBLOOD” expansion pack for “FINAL FANTASY XIV.” This release drove a sharp uptick in subscriber numbers and brought us to the highest paying subscriber count we have had in the four years since launch. We intend to release an expansion pack for “DRAGON QUEST X” in 2H, and look for it to help us maintain and add to our subscriber base.

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At the Games for Smart Devices/PC Browsers sub-segment, existing titles are performing well. In particular, titles such as “FINAL FANTASY BRAVE EXVIUS” have also done well overseas and contributed significantly to earnings. On the other hand, our earnings on some new titles have been less than what we had planned. The beta testing we’ve been engaged in since FY2017/3 has improved issues we had in previous launches, such as insufficient content offerings and bugs. We see our next challenge to be increasing the percentage of titles that are hits by ensuring the appeal of the games themselves.

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