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2Q FY2025 Presentation Material We corrected past annual securities reports and others due to the discovery of an inappropriate accounting treatment at the consolidated subsidiary. Please refer to the “Notice on Submission of Correction Reports of Past Annual Securities Reports and Amendments of Financial Statements for Past Fiscal Years” released on May 15, 2025, for details.
The briefing clarified GREE’s strategic priorities for FY2022, focusing on the Reality metaverse platform and its associated investment plans. GREE intends to sustain its advertising spend at the level of Q1, while allocating additional capital toward app development, specifically labor and outsourcing costs to enhance functionality. The company positions Reality as a distinct metaverse by leveraging Japanese anime aesthetics, citing growing global interest in anime‑styled content and the platform’s dual social networking and gaming capabilities as key differentiators. In terms of financial outlook, GREE acknowledges volatility in its Investment and Incubation Business due to the unpredictable nature of venture‑capital returns, which are largely driven by dividend distributions. Despite this uncertainty, the company expects a measurable income contribution from these investments. For the Internet and Entertainment Business in Q2 FY2022, GREE projects operating income in the several‑hundred‑million‑yen range. This forecast is supported by anticipated revenue from new game applications, increased development expenditures—including outsourcing—and heightened advertising investment aimed at accelerating Reality’s growth. The briefing covers the Japanese market with a global reach for anime‑centric audiences, spans the first quarter of FY2022 through Q2 projections, and addresses both platform development and financial performance. Methodological details are limited to internal budgeting assumptions rather than external data sources, reflecting an internally driven strategic assessment.