■Summary of main supplementary explanations questions and answers at the FY2023 Second Quarter GREE results briefing held on February 8, 2023 【Q1】 Can you give us a picture of sales trends in the Internet and Entertainment Business? 【A1】 In the Game and Anime business, Heaven Burns Red remained firm, but sales declined on a winding down of the impact from half-year anniversary events. Steady growth continued in the Metaverse Business and the Commerce and DX Business. 【Q2】 What is the outlook for Heaven Burns Red from 3Q onward? 【A2】 Our main focus points are the one-year anniversary event for the Japanese version and the release of Korean and traditional Chinese language versions. Pre-registration for the Korean and traditional Chinese versions are proceeding smoothly and these versions sparked considerable buzz at local game shows, with many users voicing their anticipation. 【Q3】 Can you give us some background on the activities and goals of the Anime Business? 【A3】 Our Anime Business has two main goals. First is the securing of IP. Acquiring and holding IP is an essential element in terms of developing our business and increasing profitability in the entertainment field and we see our Anime Business as one way of doing so. The second goal is diversification of our IP development. We have seen many examples of other companies developing game IP into anime content that allows users to enjoy games even more and eventually contributes to earnings. We established the Anime Business to give us the ability to conduct this kind of IP development in-house.

on of our IP development. We have seen many examples of other companies developing game IP into anime content that allows users to enjoy games even more and eventually contributes to earnings. We established the Anime Business to give us the ability to conduct this kind of IP development in-house. 【Q4】 Please give us an update on the Metaverse Business. 【A4】 REALITY continues to achieve steady growth and has topped its breakeven point to become profitable. Over the past six months, growth in overseas sales has been especially large and the ratio of overseas sales to total sales is rising. We aim to develop REALITY into a platform used by hundreds of millions of people around the world and we are considering making investments in promotional campaigns etc. to target further growth. 【Q5】 Can you let us know about REALITY’s regional distribution, user attributes, and overseas monetization? 【A5】 The ratio of overseas users is steadily growing and, after Japan, the second-highest ratio of users is from North America, followed by Asian countries such as Indonesia and Thailand. While we see no major differences in how the platform is used in Japan and

overseas, overseas users have a strong tendency to use it for private communications among friends. A higher ratio of users are female than male and many users are from “generation Z”. Regarding overseas monetization, as in Japan, the three main monetization points of gifting via live streaming, avatar purchases, and in-game purchases are all showing steady growth and we aim to continue this growth going forward. 【Q6】 What is the outlook for advertising costs? 【A6】 We expect advertising costs to increase somewhat in 3Q in connection with the oneyear anniversary event and the release of Korean and traditional Chinese language versions of Heaven Burns Red, and the strengthening of promotional activities for REALITY. 【Q7】 What is the income outlook for 3Q FY2023 in the Internet and Entertainment Business? 【A7】 In 3Q FY2023, we expect contribution to operating income in the Internet and Entertainment Business from the one-year anniversary event and the release of Korean and traditional Chinese language versions of Heaven Burns Red, but we also plan aggressive advertising investment targeting growth in IP over the medium-to-long term. Based on this, we expect 3Q FY2023 operating income in the Internet and Entertainment Business of between roughly ¥1.0 billion and ¥1.5 billion. However, operating income could vary based on trends related to the Korean and traditional Chinese language versions of Heaven Burns Red.

m-to-long term. Based on this, we expect 3Q FY2023 operating income in the Internet and Entertainment Business of between roughly ¥1.0 billion and ¥1.5 billion. However, operating income could vary based on trends related to the Korean and traditional Chinese language versions of Heaven Burns Red. 【Q8】 Please let us know the outlook for the Investment and Incubation Business. 【A8】 We still see little reason for optimism based on recent market conditions and we think the business could post quarterly losses over the near term. However, as we have diversified the timing and targets of our investments, we expect this business to make stable contributions to income over the medium-to-long term.