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株式会社ダイナムジャパンホールディングス

DYNAM JAPAN HOLDINGS Co., Ltd.*

(incorporated in Japan with limited liability)

(Stock Code: 06889) VOLUNTARY ANNOUNCEMENT UNAUDITED REVENUE INFORMATION FOR THE NINE MONTHS ENDED 31 DECEMBER 2016

This announcement is made by 株式会社ダイナムジャパンホールディングス (DYNAM JAPAN HOLDINGS Co., Ltd.*) (the "Company" and together with its subsidiaries, the "Group") on a voluntary basis.

The board of the directors (the "Board") of the Company hereby announces the unaudited revenue information of the Group for the nine months ended 31 December 2016.

Nine months ended 31 December 2016 2015 Approximate comparative change

(in ¥ millions) (in ¥ millions) (%)

Gross pay-ins (Note1)

  • High playing cost halls 376,268 403,125 -6.7%

  • Low playing cost halls 239,660 224,475 6.8%

    Total gross pay-ins 615,928 627,599 -1.9%

    Gross payouts (Note2)

  • High playing cost halls 315,101 341,987 -7.9%

  • Low playing cost halls 182,661 173,340 5.4%

    Total gross payouts 497,763 515,327 -3.4%

    Revenue (Note 3)

  • High playing cost halls 61,166 61,137 0.0%

  • Low playing cost halls 56,999 51,135 11.5%

Total revenue 118,165 112,272 5.2%

As at 31 December 2016

As at 31 December

2015

Number of halls

  • High playing cost halls 181 187 -6

  • Low playing cost halls 263 255 8

Total number of halls 444 442 2

* Numbers may not add up due to rounding.

Note 1: Gross pay-ins represent the amounts received from pachinko balls and pachislot tokens rented to customers less unutilised balls and tokens.

Note 2: Gross payouts represent the aggregate costs of G-prizes and general prizes exchanged at pachinko halls by customers.

Note 3: Revenue represents gross pay-ins less gross payouts.

During the nine months period, the utilization of pachinko machines has shown downward trend and the pachinko hall operators have continued to face challenging business circumstances in the entire industry.

Under such business environment, in order to achieve sustainable growth on long- term basis, the Group implemented measures to improve the utilization of pachinko machines in our halls by setting up our halls from the customer's point of view, such as conversion of hall type to cater our customers' needs, improvement of game environment by facility update, and corporate-wide sharing of successful cases at our pachinko halls.

As the infrastructure for the community, the Group is committed to expanding its market share by multiple hall development focusing on low playing cost halls for realizing the vision of "Remaking Pachinko and Pachislot More Familiar National Pastime".

During the nine months period, the Group opened 3 new low playing cost halls and closed 1 low playing cost hall. As a result, the number of halls as at the end of December 2016 became 444. By hall type, we operate 181 high playing cost halls and 263 low playing cost halls, with low playing cost halls making up the majority at 59% of the total.

As overall results of our efforts mentioned above, our total gross pay-ins for the nine months ended 31 December 2016 was ¥615,928 million, recording a decrease of 1.9% as compared to the corresponding nine months period of previous fiscal year. On the other hand, our total revenue increased by approximately 5.2% to ¥118,165 million, performing steadily under the tough business environment.

CAUTION STATEMENT Investors are reminded that the above revenue information and operational statistics for the nine months ended 31 December 2016 and the comparative figures for the nine months ended 31 December 2015 are based on the Group's internal records and management accounts and have not been reviewed or audited by auditors. Investors are cautioned that the revenue trend shown above may not be representative of the trend of profit after tax of the Group and undue reliance on or use of such information may cause investment risks. Investors are advised to exercise caution when dealing in the shares of the Company from time to time.

This announcement was prepared in English. In case of any inconsistency between the English version and the Chinese version, the English version shall prevail.

By order of the Board

株式会社ダイナムジャパンホールディングス

(DYNAM JAPAN HOLDINGS Co., Ltd.*) Kohei SATO

Chairman of the Board

Tokyo, Japan, 26 January 2017

As of the date of this announcement, the executive directors of the Company are Mr. Kohei SATO and Mr. Haruhiko MORI, and the non-executive directors of the Company are Mr. Yoji SATO and Mr. Noriaki USHIJIMA and the independent non- executive directors of the Company are Mr. Ichiro TAKANO, Mr. Mitsutoshi KATO, Mr. Thomas Chun Kee YIP, Mr. Eisho KUNITOMO and Mr. Kei MURAYAMA.

* For identification purpose only

Dynam Japan Holdings Co. Ltd. published this content on 26 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 January 2017 08:40:05 UTC.

Original documenthttp://www.dyjh.co.jp/english/ir/stock/information/EW06889_16-097.pdf

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