Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Mixi, Inc. achieved exceptional financial growth during the fiscal year ended March 31, 2016, driven primarily by the expansion of its entertainment and smartphone-based commerce segments. Net sales surged 84.9% to ¥208,799 million, while profit attributable to owners rose 85.1% to ¥61,022 million. This performance significantly bolstered the company’s balance sheet, nearly doubling cash and cash equivalents to ¥126,316 million and increasing the equity ratio from 51.4% to 73.6%. While the Entertainment Business provided the vast majority of the ¥95,033 million in operating income, the company also integrated key acquisitions, including TicketCamp operator Hunza, Inc. and MUSE & Co., Ltd., to diversify its ecosystem.

The period was characterized by substantial operational scaling and capital restructuring. Settlement fees nearly doubled to over ¥60 billion, and advertising expenses rose to ¥15.8 billion, reflecting the intensified costs of supporting a high-growth digital portfolio. Following the previous year’s acquisition of Hunza, Inc. for ¥11,573 million, the company established an eight-year amortization period for its goodwill while opting for a full one-time amortization of MUSE & Co.’s remaining goodwill. To optimize capital efficiency, a five-for-one stock split was executed alongside an overseas share offering and a ¥10 billion share repurchase program.

Despite the record-breaking results of 2016, the outlook for the fiscal year ending March 31, 2017, remains conservative. Projections suggest a modest 4.4% increase in net sales and an anticipated 11.5% decline in net profit. Geographically, operations remain heavily concentrated in the Japanese market, which accounts for over 90% of total sales and assets. The adoption of revised Japanese accounting standards for business combinations further aligned financial reporting with modern regulatory frameworks without impacting the immediate bottom line.