GREE : Summary of main supplementary explanations questions and answers at the FY2024 First Quarter GREE results briefing held on November 2, 2022

■Summary of main supplementary explanations questions and answers at the FY2024 First Quarter GREE results briefing held on November 2, 2023

【Q1】 Can you provide us with some details (for example, a schedule) regarding your development pipeline?

【A1】 We are currently working hard at developing multiple titles. Development schedules tend to be fluid and can also be influenced by outside factors such as our relationships with other companies that hold IP. It is therefore currently impossible to provide details and schedules for titles under development.

【Q2】 Can you talk about the progress you have made in the Metaverse Business (Platform Business)?

【A2】 REALITY is steadily growing as a platform business. Performance was strong compared with the previous quarter, partially owing to successful anniversary events. Regions driving growth in 1Q included Japan followed by North America. REALITY is monetized in multiple ways including avatars and gifting and we saw earnings contribution from avatars in 1Q.

【Q3】 Can you tell us about the main clients of the DX Business?

【A3】 Currently, DX Business clients can be divided into two segments. The first is clients in the game and entertainment industries. We leverage the experience of the GREE Group to provide these clients with solutions in the areas of advertising, customer service, and quality assurance, etc. The other segment is national-scale clients in the food and beauty industries. We support the digital marketing of these clients. We believe our client base is growing at a faster pace than the industry average, especially in the second segment.

【Q4】 What is the outlook for consolidated earnings in 2Q FY2024?

【A4】 Excluding the Investment Business, we expect consolidated operating income of roughly ¥0.5 billion in 2Q FY2024.

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

【A5】 Our outlook has not changed since we last announced it (on August 3, 2023). We expect consolidated operating income of 4.0-5.0 billion as we do not expect contribution from new titles in the Game and Anime Business or large income contribution from the Investment Business.