Nippon Ichi Software,Inc.

This report describes the business activities, structure and risks of the business group comprising Nippon Ichi Software, Inc. and its 6 consolidated subsidiaries. The group’s core businesses are entertainment, including the development, production and sale of home-use video game software, smartphone content, copyright licensing, and contract development of titles for other companies, as well as student dormitories and other businesses. The consolidated subsidiaries are NIS America, Inc. (Santa Ana, U.S., capital of US$200,000, 100.0%), STUDIO ToOeuf (Kakamigahara, Gifu Prefecture, 100.0%), Nippon Ichi Software Vietnam Co., Ltd. (Ho Chi Minh City, Vietnam, capital of VND3,228,750,000, 100.0%), 楽しみチーム (Kakamigahara, Gifu Prefecture, 100.0%), システムソフト・ベータ (Fukuoka, Fukuoka Prefecture, 100.0%) and 名古屋グラフィックスタジオ (Nagoya, Aichi Prefecture, 100.0%). The entertainment business reported net sales of ¥3,485.742 million and operating income of ¥38.195 million, while the student dormitories and other businesses reported net sales of ¥120.889 million and an operating loss of ¥21.869 million. Overall net sales were ¥3,606.632 million, operating loss was ¥409.156 million, and loss attributable to owners of the parent was ¥255.582 million. Major customers include Nintendo, Sony Interactive Entertainment, KOEI TECMO AMERICA and Sega Games, as well as Happinet and other companies in Japan. Overseas operations include sales in North America and Europe, as well as the localization and sale of domestic titles.