■Summary of main supplementary explanations questions and answers at the FY2022 Second Quarter GREE results briefing held on February 7, 2022 【Q1】 Please let us know the development status of Heaven Burns Red. 【A1】 Heaven Burns Red is scheduled for release on February 10. Pre-registration numbers are very strong and many fans have expressed their excitement about the release. 【Q2】 What is the current status and future outlook for REALITY? 【A2】 We have strengthened promotional activities and other global distribution efforts and this has resulted in strong growth, including a rise in sales per user in North America. Going forward, we will conduct promotional activities as appropriate and focus on development and enhancing functionality with the goal of evolving REALITY into a platform that is used as a communication service on a daily basis. 【Q3】 Please comment on the status of the Investment and Incubation Business. 【A3】 Valuation & translation adjustments (unrealized gains on listed shares) declined compared with last quarter owing to the decline in the stock market as a whole, but we still have sizable unrealized gains on our investments. When viewed over the short term, the Investment and Incubation Business is impacted by the timing of our exits and stock market trends, but we believe the business will achieve stable profit over the long term.

stock market as a whole, but we still have sizable unrealized gains on our investments. When viewed over the short term, the Investment and Incubation Business is impacted by the timing of our exits and stock market trends, but we believe the business will achieve stable profit over the long term. 【Q4】 Can you comment on the repurchase of shares and the transfer of listing to the new prime section of the Tokyo Stock Exchange? 【A4】 As results formed a bottom in FY2021 and earnings momentum is improving, and in line with our medium-to-long-term goal of sustainably achieving ROE over 10%, we have determined that share repurchases are an effective capital strategy. We therefore repurchased a sizable portion of our issued shares. While we are aware of the possibility that the Company could fall short of the prime section’s standards regarding the ratio of shares outstanding, we intend to remain listed on the prime section. We will take into consideration shareholder value when considering how to improve our ratio of shares outstanding.

【Q5】 Can you explain the line item on the balance sheet “Money held in trust”? 【A5】 While holding sufficient levels of capital to operate our businesses, we make use of short-term money trusts to make safe investments that do not have an adverse impact on operations. In general, we think it is appropriate to view these investments as similar to cash in terms of their level of risk. 【Q6】 What is the income outlook for 3Q FY2022 in the Internet and Entertainment Business? 【A6】 We expect 3Q operating income in the Internet and Entertainment Business of somewhere between roughly \1.5 billion and just under \2.0 billion as we expect contribution from new titles.