Financial · May 1, 2014

Consolidated Financial Results for the Fiscal Year Ended March 31, 2014

Published by mixi

Summary

The fiscal year ended March 31, 2014, represented a period of significant structural transition and strategic reinvestment for the Japanese social networking and gaming firm. While net sales experienced a modest 3.8% decline to ¥12,155 million, the company recorded a net loss of ¥227 million, a sharp reversal from the previous year’s profit. This downturn was largely attributed to impairment losses from the liquidation of Chinese subsidiaries, the closure of local bases, and high effective tax rates resulting from goodwill amortization. Despite these losses, the company’s financial foundation remained robust, with total assets increasing to ¥26,492 million and an equity ratio of 84.5%. The Social Net Business segment served as the primary revenue engine, contributing ¥11,550 million in external sales. This performance was bolstered by the growth of the mobile title Monster Strike, which signaled a shift in the company’s core growth drivers. To support this evolution, the group pursued aggressive portfolio expansion through the 100% acquisitions of Diverse, Inc. and Confianza & Co., Inc. for approximately ¥1.2 billion, alongside a strategic business transfer to enhance research and matchmaking services. These moves were complemented by internal restructuring, including the disposal of aging server infrastructure and software assets totaling ¥337 million. Capital management was a central focus throughout the period, characterized by a hundred-for-one stock split and new share issuances that raised ¥6.5 billion. These actions nearly doubled cash and cash equivalents to ¥16.8 billion, providing the liquidity necessary for future scaling. Looking toward fiscal year 2015, the outlook is highly optimistic, with projections suggesting net sales will more than triple to ¥40,000 million and net income will reach ¥6,000 million. To further improve share liquidity and broaden the investor base in anticipation of this growth, the board approved an additional five-for-one stock split effective July 2014.

From the report

A FASF Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 [Japanese GAAP] May 14, 2014 Company name: mixi, Inc. Stock exchange listing: Tokyo Stock Exchange Securities code: 2121 URL: http://mixi.co.jp/ Representative: Yusuke Asakura, President Inquiries: Yasuhiro Ogino, Director and Chief Financial Officer Phone: +81-3-5738-5900 Scheduled date of Ordinary General Meeting of Shareholders: June 24, 2014 Scheduled date of commencing dividend payments: June 9, 2014 Scheduled date of filing securities report: June 25, 2014 Availability of supplementary briefing materials on financial results: Available Schedule of financial results briefing session: Yes (for institutional investors and securities analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014) (1) Consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income Fiscal year ended ¥ million % ¥ million % ¥ million % ¥ million % March 31, 2014 12,155 (3.8) 480 (81.3) 263 (90.0) (227) － March 31, 2013 12,632 (5.3) 2,574 17.3 2,629 24.8 1,654 120.7 (Note) Comprehensive income: Fiscal year ended March 31, 2014: ¥(95) million [-%] Fiscal year ended March 31, 2013: ¥1,691 million [130.8%]

% ¥ million % ¥ million % ¥ million % March 31, 2014 12,155 (3.8) 480 (81.3) 263 (90.0) (227) － March 31, 2013 12,632 (5.3) 2,574 17.3 2,629 24.8 1,654 120.7 (Note) Comprehensive income: Fiscal year ended March 31, 2014: ¥(95) million [-%] Fiscal year ended March 31, 2013: ¥1,691 million [130.8%] Basic net income Diluted net income Net income Ordinary income Operating income per share per share to equity to total assets to net sales Fiscal year ended ¥ ¥ % % % March 31, 2014 (15.22) － (1.2) 1.1 4.0 March 31, 2013 110.83 110.73 10.7 13.2 20.4 (Reference) Equity in income of affiliates: Fiscal year ended March 31, 2014: ¥(152) million Fiscal year ended March 31, 2013: ¥(36) million (Note) 1. “Diluted net income per share” for the fiscal year ended March 31, 2014 is not presented due to the fact that mixi recorded net loss per share although mixi had dilutive shares. 2. mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. The figures of “basic net income per share” and “diluted net income per share” are calculated upon the assumption that the stock split had been carried out at the beginning of the previous consolidated fiscal year.

. mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. The figures of “basic net income per share” and “diluted net income per share” are calculated upon the assumption that the stock split had been carried out at the beginning of the previous consolidated fiscal year. (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets per share As of ¥ million ¥ million % ¥ March 31, 2014 26,492 22,427 84.5 1,392.24 March 31, 2013 20,083 16,291 80.8 1,086.59 (Reference) Equity: As of March 31, 2014: ¥22,375 million As of March 31, 2013: ¥16,224 million (Note) mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. The figures of “net assets per share” are calculated upon the assumption that the stock split had been carried out at the beginning of the previous consolidated fiscal year.

(3) Consolidated Cash Flows Cash flows from Cash flows from Cash flows from Cash and cash operating activities investing activities financing activities equivalents at end of period Fiscal year ended ¥ million ¥ million ¥ million ¥ million March 31, 2014 321 976 6,203 16,818 March 31, 2013 2,836 (946) (137) 9,199 2. Dividends 1st 2ndAnnual dividends Total Payout ratio Dividends to quarter- quarter- 3rd Year-end Total dividends paid (consolidated) equity end end quarter- (annual) (consolidated) end Fiscal year ended ¥ ¥ ¥ ¥ ¥ ¥ million % % March 31, 2013 － 0.00 － 2,200.00 2,200.00 328 19.9 2.1 March 31, 2014 － 0.00 － 14.00 14.00 225 － 1.1 Fiscal year ending March 31, 2015 －－－－－－ (Forecast) (Note) 1. Although mixi carried out a hundred-for-one stock split of common shares on April 1, 2013, the figures for the fiscal year ended March 31, 2013 are the amounts of dividends actually paid before the stock split. 2. The forecast of dividends to be paid for the fiscal year ending March 31, 2015 has yet to be determined. 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2015 (April 1, 2014 to March 31, 2015) (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income Net income per share ¥ million % ¥ million % ¥ million % ¥ million % ¥ First half 19,500 390.0 4,600 － 4,600 － 2,800 － 34.84 Full year 40,000 229.1 10,000 1,982.4 10,000 3,690.3 6,000 － 74.66 * Notes: (1) Changes in significant subsidiaries during the fiscal year ended March 31, 2014 (changes in specified subsidiaries resulting in change in scope of consolidation): No

rst half 19,500 390.0 4,600 － 4,600 － 2,800 － 34.84 Full year 40,000 229.1 10,000 1,982.4 10,000 3,690.3 6,000 － 74.66 * Notes: (1) Changes in significant subsidiaries during the fiscal year ended March 31, 2014 (changes in specified subsidiaries resulting in change in scope of consolidation): No (2) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: No 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (3) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): March 31, 2014: 16,640,600 shares March 31, 2013: 15,510,600 shares 2) Total number of treasury shares at the end of the period: March 31, 2014: 568,700 shares March 31, 2013: 578,600 shares 3) Average number of shares during the period: Fiscal year ended March 31, 2014: 14,980,311 shares Fiscal year ended March 31, 2013: 14,929,157 shares (Note) mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. Total number of issued shares (common shares) is calculated upon the assumption that the stock split had been carried out at the beginning of the previous fiscal year.

(Reference) Outline of Non-consolidated Financial Results 1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (April 1, 2013 to March 31, 2014) (1) Non-consolidated Operating Results (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Net income Fiscal year ended ¥ million % ¥ million % ¥ million % ¥ million % March 31, 2014 9,666 (16.4) 416 (77.8) 596 (73.0) (7) － March 31, 2013 11,563 (6.6) 1,877 21.6 2,212 36.0 1,159 433.1 Basic net income Diluted net income per share per share Fiscal year ended ¥ ¥ March 31, 2014 (0.51) － March 31, 2013 77.63 77.57 (Note) 1. “Diluted net income per share” for the fiscal year ended March 31, 2014 is not presented due to the fact that mixi recorded net loss per share although mixi had dilutive shares. 2. mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. The figures of “basic net income per share” and “diluted net income per share” are calculated upon the assumption that the stock split had been carried out at the beginning of the previous consolidated fiscal year. (2) Non-consolidated Financial Position Total assets Net assets Equity ratio Net assets per share As of ¥ million ¥ million % ¥ March 31, 2014 25,048 21,827 87.0 1,355.19 March 31, 2013 19,233 15,608 80.8 1,040.83 (Reference) Equity: As of March 31, 2014: ¥21,780 million As of March 31, 2013: ¥15,541 million (Note) mixi carried out a hundred-for-one stock split of common shares on April 1, 2013. The figures of “net assets per share” are calculated upon the assumption that the stock split had been carried out at the beginning of the previous fiscal year.

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Type: Financial

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