Summary of Questions and Answers：
Q1.
This is the final year of the Group’s medium-term plan, and you said that reaching its earnings targets (net sales of ¥300-400 billion and an operating profit of ¥40-50 billion) will hinge on how well the major game titles released this year sell. When and how do you plan on promoting those titles?
A1.
Many major trade shows such as E3 have been cancelled or scaled back due to COVID-19, so our Group will engage in its own advertising initiatives rather than relying on those. We plan on unveiling each title at the time that is the most appropriate for it.
Q2.
Could you describe the Group’s philosophy on stealth marketing, and if the Group has ever engaged in it, could you share the details?
A2.
Our Group has a policy against stealth marketing (marketing products and services in ways that consumers do not recognize as marketing), so we do not have any examples of such marketing practices. If there has been anything that has appeared to be stealth marketing by us, it was just a celebrity putting information out there of their own volition without having been asked to do so by our Group.
Q3
The professional career of the candidate in the third voting item makes him sound like a better fit for director who is an Audit & Supervisory Committee member rather than a substitute. Why is he a substitute?
A3.
As the general manager of our Internal Audit Office, the candidate is responsible for our internal audits. That role differs from that of a director who is an Audit & Supervisory Committee member, so at present, we have deemed him to be a good fit for substitute director.
Q4.
Seven of the nine candidates for director are outside directors. Do you not think it would be better to add more directors from within the Group?
A4.
We are a pure holding company whose purpose is to manage the Group as a whole. As such, our board needs to act as what is called a “monitoring board” and oversee the execution of operations. We therefore believe it appropriate to staff the board primarily with outside directors and independent executives. Meanwhile, in order to make our Group’s operating companies responsible for the execution of operations, we staff their boards primarily with operational leaders from within the organization.
Q5.
There are game and content companies that have their own directly managed shops in Shibuya PARCO. Does the Group not have any plans to open stores inside large retail properties?
A5.
We do directly operate stores where we sell merchandise as well as food and beverages. We will consider the specifics of possible store openings within large retail properties on an individual basis.