GREE : Summary of main supplementary explanations questions and answers at the FY2024 Third Quarter GREE results briefing held on May 8, 2024

■Summary of main supplementary explanations questions and answers at the FY2024 Third Quarter GREE results briefing held on May 8, 2024

【Q1】 What were the factors behind the improvement in Game and Anime Business earnings? 【A1】 There were two main factors behind the earnings improvement. The first factor was

the optimization of promotional activities. As Heaven Burns Red has reached its 2-year anniversary, compared with last year, we were able to more efficiently conduct promotional activities and this contributed to earnings improvement. The second factor was the reorganization and optimization of development and management personnel. We streamlined our human resource structure by conducting a full-scale review of all current projects and reassigning personnel to more profitable projects.

【Q2】 Can you comment on multiplatformization in the Game and Anime Business?

【A2】 We believe multiplatformization will be essential in the games market going forward and we view multiplatformization as an important strategy for the future. As part of our efforts in this area, we are moving forward with preparations for console game development.

【Q3】 Can you provide some details regarding future investments in the VTuber Business? 【A3】 We plan to make investments in two main areas. First is investment in management

personnel proportionate to the increase in the size of our VTuber talent pool. Second is investment in live events and production and marketing of merchandise. While we expect the latter to contribute to growth in sales over the near term, in order to achieve full-scale enduring growth in the VTuber Business, our most important mission is to expand and energize our fan base. We think this is reflected in indicators such as the number of simultaneous connections during talent live streams. Therefore, although we do not think such indicators are immediately and directly reflected in earnings results, we will focus on them as we make adjustments to our various investments.

【Q4】 What is the outlook for consolidated earnings in 4Q FY2024?

【A4】 Excluding the Investment Business, we expect consolidated operating income of roughly ¥1.5 billion in 4Q FY2024.

【Q5】 What is the outlook for consolidated earnings in full-year FY2024?

【A5】 Excluding the Investment Business, we expect consolidated operating income of roughly ¥5-6 billion in FY2024.