DeNA : FY2023 Results Briefing Q&A Summary

‭Q1‬

‭What is the breakdown of contribution from each business in your commitment to‬

‭achieve 15.0 billion yen in non-GAAP operating profit in FY2026?‬

‭A1‬

We‭ do not disclose the figures for each individual business, but overall we have‬

committed‭

to achieving 15.0 billion yen in non-GAAP operating profit, and we also‬

intend‭

to pursue upside potential. We will also increase capital efficiency in the mid‬

to‭ long term while focusing on ROE.‬

In‭ our Game Business operations we will focus on minimizing the downside risk and‬

strengthen‭

the earnings base.‬

For‭ the Live Streaming Business, we secured a profit for the full fiscal year while‬

investing‭

for growth in FY2023, and have now established a solid foundation. While‬

we‭ will pursue growth, we aim to find a balance between investment and growth, and‬

will‭ aim to have profit contribution.‬

In‭ Healthcare & Medical, we are making steady progress to achieve profitability. We‬

previously‭

set a goal of achieving 5.0 billion yen in profit for Healthcare & Medical,‬

and‭

3.0 billion yen for Sports & the Community, and we intend to achieve this goal‬

over‭

the next 3 years.‬

We‭ believe that we will achieve our commitment for FY2026 by enhancing our‬

business‭

portfolio through growth in each business. I would also like to add that due‬

to‭ the difficulty of reasonably forecasting a major game hit, etc., that possibility is‬

considered‭

upside potential relative to this commitment.‬

‭Q2‬

‭How do you reflect on the delay in achieving your goals (20.0 billion yen in revenue‬

‭and 5.0 billion yen in profit in FY2024) for the Healthcare & Medical Business?‬

‭A2‬

Our‭

projects in the Healthcare & Medical Business are taking more time than we‬

anticipated‭

. However, we are seeing good signs, and we believe we will be able to‬

achieve‭

those goals over the next 3 years.‬

In‭ the Healthcare Area, we have made steady progress with Data Health. We are‬

also‭

aiming to achieve growth in Data Use, but some projects that were originally‬

expected‭

in Q4 are taking more time than we originally anticipated. The Healthcare‬

Area‭

was close to breakeven in Q4, and the full year operating profit/loss also‬

improved‭

compared to the previous fiscal year, so we were close to our goal.‬

In‭ the Medical Area the spread of Join is proceeding steadily, and we are expecting‬

further‭

evolution in the Join business model. We have been exploring projects that‬

leverage‭

Join Mobile Care, etc., which I described in the Operating Results Briefing‬

materials,‭

but we did not end up having contribution in FY2023. However, once this‬

business‭

model provides contribution we believe we will be able to achieve‬

profitability,‭

and we are working on moving such projects forward.‬

‭Q3‬

‭Up through FY2023 you recognized impairment losses and reviewed the China‬

‭Business, among other efforts. What is the estimated impact on profit?‬

‭A3‬

‭Over the past 3 years our business portfolio has changed significantly, and we are‬

‭now getting into the phase of strengthening that portfolio. We aim to grow profit‬

‭every year and achieve our commitment. Our various initiatives through FY2023‬

‭have laid the foundation for us.‬

‭Each business segment has the potential to grow, and we will do our best in each‬

‭area to achieve revenue growth this fiscal year and grow non-GAAP operating profit.‬

‭Q4‬

‭When do you expect financial contribution from Nintendo Systems?‬

‭A4‬

This‭

is an initiative with a partner company, so we cannot comment specifically.‬

‭Q5‬

The‭

number of clients is increasing in Data Use, and the number of clients who are‬

not‭ pharmaceutical companies is also increasing. Who are these other clients? You‬

also‭

mentioned that you will need more time for revenue contribution for some‬

transactions‭

. Can you provide more detail?‬

‭A5‬

‭Other than pharmaceutical companies, we have growing numbers of clients who‬

‭include, for example, academia.‬

‭We can't necessarily identify one specific factor that is causing us to need more time‬

‭for revenue contribution. We are communicating carefully with clients to ensure‬

‭everything goes smoothly as we move forward with this business, so there were‬

‭some cases where we did not end up completing the entire sales process before last‬

‭fiscal year ended. That being said, we are still seeing very good signs of the appeal‬

‭of our data solution, and we will do our best to deliver results.‬

‭Q6‬

‭I have heard that the prices of materials have skyrocketed. Do you expect the‬

‭Kawasaki! Arena City Project to open on schedule in October 2028?‬

‭A6‬

‭We are proceeding on schedule.‬

‭Q7‬

Sports‭

Business revenue has grown significantly. Could the Sports Business come to‬

represent‭

the largest share of overall revenue among your businesses?‬

‭A7‬

‭We cannot speak with certainty about future possibilities, but we believe it is‬

‭important for each business to secure its foundation for financial contribution and‬

‭achieve growth. Over the next 3 years we will do our best to enhance our portfolio.‬