Business Selection and Concentration and Synergies Between Businesses

「From the perspective of the Company’s sustainable growth and enhancement of corporate value, we decided to transfer the shares of consolidated subsidiaries in the game business segment to the transferee as part of a review of our business portfolio.」

「The company aims to build a cumulative stream of earnings through releases of new titles in addition to titles in operation. However, as released new titles were performing below expectations, it reviewed its operating and development portfolio and decided during the second quarter to close 1 title in operation that had been released at the end of the previous fiscal year and discontinue development of 1 unreleased title under development at the prototype stage.」

「Because the situation for the new mobile game title was more challenging than expected, we reviewed the overall strategy for mobile game titles under development and implemented measures including cost reductions, seeking to improve the earnings situation at an early stage.」

「Profit increased from the previous fiscal year due to the increase in revenue from titles in operation, greater efficiency in the operating structure and the closure of certain unprofitable titles, among other factors.」

「Profit increased year on year due to the increase in revenue from flagship titles, greater efficiency in the operating structure and the closure of certain unprofitable titles, among other factors.」

「Profit increased year on year due to the increase in revenue from flagship titles and the closure of certain unprofitable titles, among other factors. As a result, segment net sales were ¥5,670,326 thousand, up 10.8% year on year, and segment profit was ¥1,809,758 thousand, up 62.9% year on year.」

「Profit increased year on year due to the increase in revenue from flagship titles and the closure of certain unprofitable titles, among other factors.」

「Our group aims for sustained medium- to long-term growth by concentrating management resources on the game business, our principal business, and further advancing our current strategy centered on third-party content. We will also focus on building a business portfolio that can limit the risks of overreliance on a single business and respond flexibly to future changes in the business environment by directing earnings generated by the game business toward the creation of new services and businesses.」

「Although net sales declined year on year due to the closure of several titles in operation and the withdrawal from the advertising business, net sales also declined year on year because we adopted an operating structure focused on further cost efficiency and the amount capitalized increased as development progressed.」

「Our group aims for sustained medium- to long-term growth by concentrating management resources on the game business, our principal business, and further advancing our current strategy centered on third-party content. We will also focus on building a business portfolio that can limit the risks of overreliance on a single business and respond flexibly to future changes in the business environment by directing earnings generated by the game business toward the creation of new services and businesses.」

「In this business segment, the advertising business had long been positioned as a key service and a focus area outside the game business. However, under a growth strategy centered on the core game business, we decided to concentrate even more management resources on that business and ended all advertising services at the end of the first quarter.」

「Under a growth strategy centered on the core game business, we decided to concentrate even more management resources on that business and ended all services in the advertising business at the end of the first quarter.」

「Specifically, we will further improve profitability, primarily by addressing unprofitable titles in the existing game business, review the current service portfolio to better align it with the business environment, and seek to allocate management resources efficiently.」

「Profit increased from the previous fiscal year because the number of unprofitable titles declined and operating cost optimization was pursued over the past year, reducing costs and resulting in a shift from an operating loss in the previous fiscal year to an operating profit.」

「Profit increased from the same period of the previous year because the number of unprofitable titles declined and operating cost optimization progressed over the past year, reducing costs and resulting in a shift from an operating loss in the same period of the previous year to an operating profit.」

「Profit increased year on year as costs declined through measures including the discontinuation of unprofitable titles and optimization of operating costs through a review of the operating structure, resulting in the recording of a profit.」

「Profit increased year on year as costs declined through measures including the discontinuation of unprofitable titles and optimization of operating costs through a review of the operating structure, resulting in the recording of a profit.」

「Because new titles launched in the previous and current consolidated fiscal years made only a limited contribution to sales, some titles were discontinued as the company sought to select and focus its management resources.」

「Going forward, our two highest-priority objectives will be expanding the new browser game service “enza” and further improving profitability by optimizing operating costs for existing game applications. We will prioritize the allocation of management resources to these areas and work to expand the business.」

「Our group is placing emphasis on selecting and focusing on businesses and creating synergies between them, with the aim of strengthening our medium-term earnings base. Specifically, in line with the expansion of the rapidly growing social gaming market, we will strengthen investment in social games and seek to maximize business synergies with our advertising services.」

「During the third quarter consolidated accounting period, we transferred all shares of 株式会社グリモア held by us and therefore excluded the company from the scope of consolidation.」

「At a meeting of the Board of Directors held on 3 October 2016, we resolved to transfer all shares of our wholly owned consolidated subsidiary 株式会社グリモア to Happy Elements株式会社 (the “Share Transfer”).」

「We have designated IP games as a strategic focus, are concentrating management resources on developing new IP games and are working to expand the business.」

「Our group is placing emphasis on selecting and focusing on businesses and creating synergies between them, with the aim of strengthening our medium-term earnings base.」