COLOPL : 2Q FY Sep.2023 Question and Answer Summary（381KB）

Note: This document is a translated version for reference purposes only. Therefore, any discrepancy may occur with the Japanese original version. Please refer to the Japanese version if you find anything unclear. COLOPL, Inc. takes no responsibility for any problems of translation.

Q&A for 2Q FY2023 Operating Results Briefing

This financial results meeting was held on Wednesday, May 10, 2023 at 3:30 p.m. Below is a summary of the question and answer session.

Q：Please explain the reasons for the strong performance in the second quarter and the change in expenses compared to the first quarter.

A：The 3.5th anniversary event of "DRAGON QUEST WALK" and the collaboration event of "Shironeko Project" contributed significantly to sales, which we believe was due to the ingenuity of the management and the ability to provide the playful experience that users were looking for. In addition, through years of operation, we have accumulated the internal know-how to provide the services that users demand at the right time, and while there are always difficulties in surpassing the previous year's results, we believe that this will continue to be effective in the future. As for expenses, advertising expenses for "NEKO GOLF -AnimeGOLF-," which was released in the first quarter, decreased in the second quarter. Advertising expenses are being controlled in line with the status of each title.

Q：What is your outlook for the third quarter?

A：Since the anniversary events of major titles are concentrated in the fourth quarter, there is an element of seasonal factors that will depress third quarter results, as has been the trend in previous years. However, the collaboration events for each title have been steady recently, and the results have been as expected.

Q：Please tell us about the progress of your blockchain game. Also, what exactly does "Sustainable Play to Earn" mean?

A：The development itself is progressing smoothly, with chief creator Baba leading the way. However, since this game will require a different marketing approach than the games we have developed so far, we would like to implement a closed alpha for people with knowledge of Web3 and gradually expand the community to make the project a success. We are developing an unprecedented game and will announce more details in the summer. "Sustainable Play to Earn" has a desire to ensure sustainability, which is a challenge for blockchain gaming, and to create

value in the world by playing games. The blockchain game requires various legal, accounting, and other responses, but overall it is doing well.

ー Thank you very much ー