Supporting Document: Quarterly Transition by Business Segment

Financial performance data for the fiscal years 2019 and 2020 reveals a period of significant growth and operational scaling across multiple business segments, including media, gaming, internet advertising, and investment development. The data covers the full four quarters of FY2019 and the first two quarters of FY2020, providing a comparative look at quarterly transitions in sales, operating profit, and operating profit margins. Total sales increased from 453.6 billion yen in FY2019 to 244.8 billion yen in just the first half of FY2020, indicating a strong upward trajectory.

The internet advertisement business remains the largest revenue driver, generating 256.6 billion yen in FY2019 and reaching 140.1 billion yen by the midpoint of FY2020. While the media business continues to operate at a loss as it scales, its operating profit margin improved from negative 40.9% in the first quarter of FY2019 to negative 30.7% by the second quarter of FY2020. In contrast, the game business serves as a primary profit engine, showing substantial margin expansion. Game segment operating profit rose from 3.2 billion yen in the first quarter of FY2019 to 10.4 billion yen in the second quarter of FY2020, with margins climbing from 8.8% to 23.3% in that same period.

Overall profitability has strengthened significantly over the tracked timeframe. Total operating profit for the first half of FY2020 reached 20.2 billion yen, which is approximately 65% of the total profit recorded for the entire previous fiscal year. This growth is underpinned by the combined performance of the advertising and gaming sectors, which offset the planned investment losses in the media segment. The investment development business remains highly volatile, with margins fluctuating between 90.2% and negative 231.6% depending on the timing of asset realizations.