Summary of Key Questions and Answers

From the Operating Results Briefing for FY2022

The following is a summary of the key questions and answers from the operating results briefing for FY2022, held on May 10, 2023.

Q1 What are your thoughts about achieving a turnaround for growth in Pococha Japan?

A1 Pococha Japan has been in the growth phase since before COVID-19. Then, it was significantly boosted by increased demand due to people staying at home, but subsequently slowed down over the past year. That being said, we have been able to secure highly active users, and building up these highly active users is important for further growth. We are enhancing our user acquisition methods and efforts to ensure users enjoy the service for a long period of time.

Q2 Please share more information about the factors behind the growth in the Healthcare

  • Medical Business in Q4, and about the seasonality you mentioned. Please also share your expectations for performance for each area and service.

A2 The Healthcare & Medical Business includes multiple areas and services, which each have their own characteristics, including seasonality. For this reason, I believe it is better to look at the results and trends for each fiscal year. For example, in the Data Use Business in the Healthcare Area, some of our major customers include pharmaceutical companies, who tend to have relatively strong seasonality towards the second half and Q4. Meanwhile, in the Medical Area we have multiple services, and amongst them, Join has been able to significantly grow the number of facilities using the service. For the Healthcare & Medical Business there may be short term variability in any given quarter's performance, but we expect to be able to steadily build up performance to achieve our goals for FY2023 and FY2024 on a full year basis.

Q3 Please share the background for why the Sports Business is categorized into the Serve approach.

A3 In the DeNA Sports Business, we have the Yokohama DeNA BayStars, who are closely tied to Yokohama, and the Kawasaki Brave Thunders, who are closely tied to Kawasaki. In each case there is a close connection to a physical place. With a real stadium and arena, many customers physically come to the area, bring energy to the surrounding community, and in our view this connects with machizukuri, and is relevant to contributing to society. Machizukuri is linked with encouraging better health, education, and a variety of other social issues, which in our view places it in the Serve approach.

Q4 When will costs be incurred related to construction for the new arena in Kawasaki?

A4 We are currently in joint exploration with Keikyu Corporation, and we have no further details to share at this time. Our goal is to open the new facility in October 2028, and we will aim to make progress in our preparations towards that goal.

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Q5 The "play-by-play LIVE" streaming service that was recently tested seems to be a service allowing individuals to stream sports games live from the stands. What is the aim and positioning of this service?

A5 That was a test we recently conducted, and we have no further details to provide today. Sports is an important type of content we provide, and we are exploring various ways that we can deliver Delight in this space.

Q6 Please share the breakdown of performance in the Game Business for each individual region for global games, in particular for Southeast Asia, etc.

A6 The scale for Japan and international performance in the Game Business is as shown on slide 11 of the Operating Results Briefing materials. A variety of regions are included in the "International apps" category.

Q7 What will be the key issue for achieving profitability in the Healthcare & Medical Business?

A7 FY2022 was a year where we made significant progress in strengthening our business portfolio, with a view to establishing our portfolio, including M&A, in this growth area over the three year period from FY2021. FY2023 will be the year where we need to grow our strengthened business portfolio. We are seeing signs of growth, and seeing proof that we will be able to deliver the value needed by the world in response to social needs. For the Healthcare & Medical Business, we aim to achieve profitability in both the Healthcare and Medical Areas for the full fiscal year in FY2023, and a combined 20.0 billion yen in revenue and 5.0 billion yen in operating profit in FY2024.

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DeNA Co. Ltd. published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 09:16:07 UTC.