DeNA : FY2023Q2 Results Briefing Q&A Summary

Summary of Key Questions and Answers

From the Operating Results Briefing for Q2 FY2023

The following is a summary of the key questions and answers from the operating results briefing for the second quarter of FY2023, held on November 8, 2023.

Q1 Please elaborate on why the profit for the Game Business did not increase despite a quarter-over-quarter increase in revenue for Q2.

A1 There are multiple factors involved, including amortization costs and marketing costs associated with new titles, as well as existing title trends, etc.

Overall, the buildup of performance from new titles continues to be important.

Q2 What are your expectations for the new title Captain Tsubasa?

A2 We cannot comment specifically on any one title, but we plan to work on all of our planned new titles, including trial and error, to enable them to provide earnings contribution.

Q3 Was your Q1 and Q2 profit for the Sports Business the highest that you have ever recorded? Do you expect to record a profit for the full fiscal year?

A3 Within the Sports Business we have baseball, basketball, and soccer in Kanagawa Prefecture. For the baseball business you can look at slide 15 of the Operating Results Briefing materials to see the Yokohama Stadium average attendance per game and get a sense for the good growth we have seen compared to pre-COVID-19 levels. We also have the basketball and soccer businesses where we can expect future growth. We will do our best to scale these businesses. In the context of our overall strengthening of our portfolio, our eventual aim is to achieve a return to profitability in the Sports Business.

This 1H was our highest-ever profit, but we recommend that you assess the Sports Business as a whole on a full-year basis. We have not shared a more specific results forecast, and I cannot provide any further detail at this time.

1