GungHo Online Entertainment : Business Report Vol.36

Maximization of Existing Values

GungHo

GAMES Raise monsters and engage

			in puzzle-combat!
SMARTPHONE	CONSUMER	PC ONLINE	Level up your favorite monsters by
			battling in this new-sensation puzzle

h t t p s : / / w w w. g u n g h o . j p /	RPG that puts your instinct to the test!

Over 59 million

downloads in Japan!

(as of April 2022)

GungHo Business Report Vol.36

Over 9 million

downloads worldwide!

(as of May 2022)

A Ninja Gum Battle Action game

for the Nintendo SwitchTM

Harness the power of ancient assassins with "ninja gum," and use it to take part in ninja battles in diverse maneuvers in this online PvP action game

The latest title

in the "Ragnarok" series,

which boasts a total

of over 100 million players worldwide

Preserving the "absolute freedom" characteristic of "Ragnarok Online," this is an MMORPG enjoyable for newcomers as well with a newly interpreted story in a pre-existing world setting

Over 6 million

downloads in Japan!

(as of September 2018)

A companion to the main "Puzzle & Dragons" game! The official eSports app for Puzzle & Dragons!

Collect drops and treasures on the map using GPS, obtain dungeons and monsters, form your own team and battle with other players!

Entering its11th year! Unstoppable evolution!

Over 32 million

downloads worldwide!

(as of July 2020)

An RPG where you can go on

adventures with your friends, whenever you want, wherever you want

An online RPG set in the vast Midgard realm, where you can battle and level up together with friends

Over 4 million

downloads worldwide!

(as of November 2019)

An ultimate battle

that creates new experiences

A never-before-seen, innovative ultimate card battle featuring multiple popular Capcom characters, with a gameplay that combines real-time and turn-based systems

Over 5 million

downloads in Japan!

(as of March 2017)

GungHo presents a board game

in the age of smartphones!

Move monsters vertically and horizontally on a 4X4 board, and fight bosses waiting at the depths of dungeons in this new-generation board game!

"Puzzle & Dragons"

Over 12 million

downloads in Japan!

(as of October 2017)

Let's punt them

up high!

Play as a princess and punt soldiers into the sky to battle monsters in this action puzzle RPG

Over 7 million

downloads worldwide!

(as of July 2021)

Bold survival action

that shakes the hearts of players

In this "survival action game" set in 2026 in a world shaped by a large tectonic disturbance, aim for the top of the Tower of Barbs with Uncle Death to guide your way

The biggest online RPG

in Japan!

Play in a magnificent world as lovely 2D characters in this popular, user-friendly MMORPG

Creation of New Values

TV anime broadcast and well received & over 9 million downloads worldwide

"Ninjala"

To be released globally in 2022

"DEATHVERSE: LET IT DIE"

Subsidiary Business		Partner Publishing
Multiple new titles to be	Further enhancing content through
released this term	major updates and events!
"Ragnarok" series	"Ragnarok Origin"

Top Message

"Puzzle & Dragons" has entered its 11th year. Moving forward, we shall continue to grow "Puzzle & Dragons" into a game brand that provides long-lasting enjoyment.

In 2020, Japan's game market, supported by solid console games sales and the expansion of the mobile game market, grew by 16.5% year on year, reaching 2,018.8 billion yen*. The global game content market in 2020 grew by 31.6% year on year, reaching 20,641.7 billion yen*, in line with the continued growth of the mobile game market, as well as the expansion of the console game market and the PC online game market.

Furthermore, the global economy, affected by the COVID-19 pandemic, has seen signs of recovery as vaccination becomes more widespread. However, concerns arising from mutant strains, as well as the effects of the Russian invasion of Ukraine, still present an unclear

For "Creation of new values," with regard to "Ninjala," a

Ninja Gum Battle Action game for the Nintendo SwitchTM, we achieved 9 million total downloads worldwide on May 26, 2022, thanks to a wide-range of cross-media efforts, such as updates and collaboration events, the TV anime "Ninjala" (launched on January 8, 2022), and promotional campaigns including television commercials. The "Ninjala" fanbase is steadily expanding globally. Moreover, for new titles, we are currently developing "DEATHVERSE: LET IT DIE," a multiplayer survival action game for the PlayStation®5/PlayStation®4/PC (Steam®). The game is scheduled to commence its services globally within 2022.

For "Partner publishing," the smartphone MMORPG

Our Group aims to become the "World's Top Entertainment Company" and provide a "moving and enjoyable experience" to the world through the following four strategies.

Maximization of Existing Values

GungHo strives to maximize the value of existing titles such as "Puzzle & Dragons" and "Ragnarok," as well as to cultivate them into game brands that provide long-lasting fun for users.

Basic

FourStrategies

outlook.

Amid such circumstances, the GungHo Group is mainly working on the following 4 initiatives: "Maximization of existing values,"

"Creation of new values," "Partner publishing," and "Subsidiary business."

For "Maximization of existing values," "Puzzle & Dragons"

celebrated its 10th anniversary on February 20, 2022 since launch, entering its 11th year. For long-lasting enjoyment, we have provided constant updates and events in the game, such as adding in new dungeons, etc., improving game content, and collaborating with famous characters from other companies, which led to solid MAU numbers. Furthermore, the game reached 59 million total downloads in Japan on April 23, 2022, partly contributed by factors such as the 10th anniversary commemorative event. Going forward, we will continue to invigorate the game's active users.

*Famitsu Game White Paper 2021

Quarterly Consolidated Business Performance

(Billions of yen)

■ Net sales ■ Operating income

				31.2	29.1		28.1
			25.4			25.4
		22.2			21.8		23.9	22.6
	19.9
19.3
		7.0	6.7	11.1	10.5	6.6	9.1		7.5
	5.2			6.4	5.7
2.8
2019.4Q	2020.1Q	2020.2Q	2020.3Q	2020.4Q	2021.1Q	2021.2Q	2021.3Q	2021.4Q	2022.1Q	2022.2Q

"Ragnarok Origin" showed a solid increase in active users and contributed to performance through consistent major updates and events.

For "Subsidiary business," GRAVITY Co., Ltd. and its

subsidiaries published Ragnarok-related titles, and through their continuous updates and events, MAU numbers continued to increase steadily. Moreover, the PC (Steam) version of "Ragnarok The Lost Memories" was released globally on April 12, 2022, and the smartphone game "Ragnarok Monster's Arena" was released in Taiwan, Hong Kong and Macau on May 11, 2022. We shall continue to push through with the above initiatives going forward to further increase our corporate value.

Kazuki Morishita

President & CEO

Net Sales by Region

(Billions of yen)							■ Japan ■ Asia	■ North America ■ Other Regions
3.7						1.6	3.6						1.4
33.7	2020.12	35.9	2021.12
	98.8		104.6
	billion yen		billion yen
	59.6		63.5

PC Online games

Smartphone games

Attract users

Attract users

Console games

TV anime

Attract users

Attract the audience

Game brand

Toys

Comics

Development of various goods

Efforts towards readers

Events

Attract participants

P.3 Entering its 11th year! Unstoppable evolution"Puzzle & Dragons"

Partner Publishing

Utilizing over 19 years of experience in online game operation, GungHo publishes titles from other developers, as well as titles that incorporate IP of other companies.

Online game	Quality games and IP
operation knowhow	inside and outside Japan

	Providing both
	quality content
GungHo	and services	Other companies

Expansion and diversification of services provided

P.5 TV anime broadcast and well received & over 9 million downloads worldwide"Ninjala" P.6 To be released globally in 2022 "DEATHVERSE: LET IT DIE"

Creation of New Values

GungHo has moved from developing games targeted primarily at the Japanese market to developing "games that can provide new experiences" targeted at global distribution.

Released in Japan

Towards game

development Multi-platform

targeted at global expansion

Overseasdistribution development

New Fields

GungHo researches and develops new areas with the anticipation of expanding markets for games, in order to provide brand-new user experiences.

Next-gen consoles

AI

AR

VR

P.7 Further enhancing content through major updates and events! "Ragnarok Origin"

1	GungHo PRESS 2

Maximization of Existing Values

Entering its 11th year!

Unstoppable evolution

10th anniversary commemorative title "PUZZLE & DRAGONS Nintendo Switch Edition" on sale now!

Utilizing the touch screen of the Nintendo SwitchTM, players can play "Puzzle & Dragons" the traditional way or show the game on a larger TV screen where at most 4 players can play at the same time using controllers! Moreover, with its online functions, aside from battling players from around the world (at most 8 people), players can also create original dungeons, upload them, and have other players worldwide play in them.

Play Puzzle & Dragons alone or with friends on the TV screen!

Four ways to play Puzzle & Dragons Switch!

Adventure Mode (solo play)

Adventure Mode (4 players)

"Puzzle & Dragons" reached its 10th anniversary on February 20, 2022, since launch. To commemorate this anniversary, we implemented a variety of events, which constantly contributed to solid user activity. Furthermore, through implementing various measures since launch, such as collaborating with famous characters from different companies, continuous updates, launching apps related to Puzzles & Dragons and developing console games, introducing new services, TV anime, comics, and merchandise sales, as well as e-sports events. Through the above, the game is now providing enjoyment to a wide range of users regardless of their ages. "Puzzle & Dragons" shall continue to evolve in an aim to grow into a game brand that provides long-lasting enjoyment.

10th anniversary events and 59 million downloads in Japan commemorative events!

"Puzzle & Dragons" reached 59 million downloads in Japan on April 23, 2022. To commemorate this, we distributed free gems and released commemorative dungeons, such as the "59 Million Download Commemorative Rush!" and the "Ultimate Descending Challenge! [No Assists]," which were enjoyed by numerous users.

Invigorating user activity through providing goodies

such as deluxe items and special dungeons!

10th Anniversary	59 Million Download	Collaboration
Events	Events	Events

In Adventure Mode, use a team of 5 monsters and aim to clear dungeons with combos.

Enjoy solo play!

Enjoy co-op adventure mode with at most 4 players. You can also enjoy multiplayer co-op in Edit Mode with at most 4 players by selecting "Play with Friends."

Have fun in mode!

Commemorative

Edit Mode	Battle Mode (battle among at most 8 players)
	Create dungeons and	Create a room and battle
	play in them, complete	friends in "Friendly
	with customizable	Match," battle players
	monsters, music,	worldwide in "World
	backgrounds, and	Match," and compete
	battle rules.	against the computer in
		"COM Match" (Computer
		Match).

©Gosho Aoyama/Shogakukan ©Mitsuru Adachi/Shogakukan ©Nobuyuki Anzai/Shogakukan ©Shinobu Ohtaka/Shogakukan ©Tomohito Oda/Shogakukan ©Rumiko Takahashi/Shogakukan ©Hiroyuki Nishimori/Shogakukan ©Kazuhiro Fujita/Shogakukan ©Hiroshi Takahashi (Akita Shoten) 1991 ©Buronson, Tetsuo Hara/Coamix 1983 Copyright license GY-502

3	GungHo PRESS 4

Creation of New Values

TV anime broadcast and well received & over 9 million downloads worldwide

"Ninjala"

"Ninjala," which was released globally on June 25, 2020, has been expanding its user base successfully since its launch, reaching a total of 9 million downloads worldwide (as of May 26, 2022). The title released a TV anime starting 2022, aiming to attract even more users.

S P E C

Title	Ninjala
Genre	Ninja Gum Battle Action
Number of players	1-8 players (Online play: 2-8 players/Offline play: 1 player)
Platform	Nintendo SwitchTM
Release date	Digital version: June 25, 2020
	Physical version: July 22, 2020
Price	Digital version: Free to play
	Physical version: 3,980 yen (tax incl.)
	*Physical version comes with exclusive items.
	*Some parts of the content require in-game microtransactions.
	*Nintendo Switch Online subscription not required for online play
Available languages	Japanese, English, French, Italian, German, Spanish, Traditional
	Chinese, Simplified Chinese, Korean

Global release scheduled in 2022

"DEATHVERSE: LET IT DIE"

A new title developed for global release by the GungHo Group, "DEATHVERSE: LET IT DIE" is a survival action game for a maximum of 16 players, highlighted by a melee-focused combat system. The title is currently under development for global release in 2022. Please stay tuned.

S P E C

Title	DEATHVERSE: LET IT DIE
Platform	PlayStation®5, PlayStation®4/PC(Steam®)
Scheduled Release Date	2022
Price	Free to play basic game *With in-game
	microtransactions
Rating	ClassInd 12+, ESRB Teen, IARC 16+, USK 12, ACB
	M, PEGI 16, RARS 16, GRAC All, GSRMR 12+
Developer	SUPERTRICK GAMES, Inc.
Publisher	GungHo Online Entertainment, Inc.

TV Anime "Ninjala" on air With in-game item campaigns for real-time watchers

© GungHo Online Entertainment. TV Tokyo

2nd anniversary campaign &

2nd anniversary commemorative tournament launching globally!

We are preparing various events to commemorate the 2nd anniversary of "Ninjala." Through events such as organizing commemorative tournaments for players to participate in and aim for high ranks, we strive to invigorate and expand user activity.

Even more diverse gameplay starting from Season 10! Introducing various updates

Now open: "WNA Resort" a space

where you can communicate with other players!

Also, a	new
The
	Goddess's activity:
		Fountain!

Launching a new challenge event "Shinobi Challenge"

go	to
Let's		Lab!!
	Gum
Ninja
the

New voice chat function
	New feature in the Ninja Gum Research: "Alter Specials"

Open beta launched on May 29 and June 5, 2022 "Limited Time Open Beta: Destroy the server!"

16-player survival action!

Watch the trailer here:

https://www.youtube.com/watch?v=bfcyWdZkTZ8&t=3s

In-company	6 new titles in
development	Smartphone games	Console games
development!
pipeline

5	GungHo PRESS 6

Partner Publishing

S P E C

"Ragnarok Origin"	Title	Ragnarok Origin
	Genre	MMORPG
	Price	Free (some items require in-game microtransactions)
	Release date June 28, 2021

Further enriching content through major updates and events!

For "Ragnarok Origin," through optimizing GungHo's knowhow accumulated through operating "Ragnarok Online," we have implemented measures to increase player longevity through various updates and seasonal events. Thanks to constant major updates and various events, user activity has been consistent and solid.

Constant major updates,

adding new maps and new professionals, as well as new monsters

Subsidiary Business Gravity Co.,Ltd.

"Ragnarok" Series

Multiple new titles to be released this term

"Ragnarok The Lost Memories" was released on mobile in Southeast Asia, North America, South America, etc., and the PC version (Steam version) commenced service globally on April 12, 2022.

PC version (Steam version) released on April 12, 2022!

"Ragnarok The Lost Memories"

"Ragnarok Monster's Arena" was released on mobile in Taiwan, Hong Kong, and Macau on May 11, 2022. In addition to its popularity especially in Asian regions, we shall proactively work to expand the "Ragnarok" series into the North American market.

Released in Asia starting May 11, 2022!

"Ragnarok Monster's Arena"

GungHo News

GungHo NEWS

Acquisition of Treasury Shares

In an aim to enhance shareholder revenue through implementing flexible capital policies and improving capital efficiency in response to changes in the operating environment, the Company performed an acquisition of treasury shares under the stipulations in the Articles of Incorporation.

Treasury Shares Acquired Based on the Resolution

at the Board of Directors' Meeting on February 14, 2022

Total number of treasury shares acquired	1,948,300 shares
Total amount acquired	4,999,767,400 yen
Acquisition period	From February 15, 2022 to March 24, 2022

Transition to "Prime Market," a New Market Segment

In line with the revision of market segmentation of the Tokyo Stock Exchange on April 4, 2022, the Company has selected and moved to the "Prime Market" segment. The "Prime Market" segment requires a higher standard of governance. Thus, in order to further strengthen the Company's governance and to respond to the expectations of our investors moving forward, we strive to enhance our sustainable growth and mid- to long-term corporate values.

For more details, please access "IR News" on our company website.

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