GungHo Online Entertainment : Business Report Vol.37

SMARTPHONECONSUMER

Over 10 million downloads worldwide!

(as of February 2023)

A Ninja Gum Battle Action game for the Nintendo SwitchTM

Harness the power of ancient assassins with "ninja gum," and use it to take part in ninja battles in diverse maneuvers in this online PvP action game

GungHodownloads in Japan!

GAMES

https://www.gungho.jp/

PC ONLINE

Over 32 million downloads worldwide!

An online RPG set in the vast Midgard realm, where you can battle and level up together with friends

An RPG where you can go on adventures with your friends, whenever you want, wherever you want

Raise monsters and engage in puzzle-combat!

Level up your favorite monsters by battling in this new-sensation puzzle RPG that puts your instinct to the test!

The latest title in the "Ragnarok" series, which boasts a total of over 100 million players worldwide Preserving the "absolute freedom" characteristic of "Ragnarok Online," this is an MMORPG enjoyable for newcomers as well with a newly interpreted story in a pre-existing world setting	Over 6 million downloads in Japan! (as of September 2018) A companion to the main "Puzzle & Dragons" game! The official eSports app for Puzzle & Dragons! Collect drops and treasures on the map using GPS, obtain dungeons and monsters form your own team and battle with other players!

Over 4 million downloads worldwide!

An ultimate battle that creates new experiences

A never-before-seen, innovative ultimate card battle featuring multiple popular Capcom characters, with a gameplay that combines real-time and turn-based systems

Over 7 million downloads worldwide!

Bold survival action that shakes the hearts of players

A "survival action game" set in 2026 in a world shaped by a large tectonic disturbance, aiming for the top of the Tower of Barbs with Uncle Death to guide your way

GungHo presents a board game in the age of smartphones!

Move monsters vertically and horizontally on a 4X4 board, and fight bosses waiting at the depths of dungeons in this new-generation board game!

Partner Publishing

Stable MAU achieved through providing continuous updates

"Ragnarok Origin"

Subsidiary Business

"Ragnarok"

The biggest online RPG in Japan!

Play in a magnificent world as lovely 2D characters in this popular, user-friendly MMORPG

Steady performance due to series development

Maximization of Existing Values

Thanks to your support, "Puzzle & Dragons"

celebrated its 11th anniversary!!

Quest for further evolution

"Puzzle & Dragons"

Top Message

Thanks to your support, "Puzzle & Dragons" celebrated its 11th anniversary.

Moving forward, we shall continue to develop game brands that provide long-lasting enjoyment.

Japan's game market shrank in 2021 to 2,002.7 billion yen*, down by 0.8% year on year, due to a slight decrease in the software market offsetting the growth in the hardware market. On the other hand, the global game content market expanded in 2021 to 21,892.7 billion yen*, up by 6.1% year on year, owing to the continued growth of the mobile game market and the expansion of the PC online game market. The outlook for the economic situation is expected to remain unclear due to the unstable international situation as well as stagnation in certain areas due to the impact of COVID-19. Amid such circumstances, the GungHo Group is mainly working on the following four initiatives: "Maximization of existing values," "Creation of new values," "Partner publishing," and "Subsidiary business."

For "Maximization of existing values," we have been providing constant updates and events for "Puzzle & Dragons" and are working to increase engagement of active users, with a focus on providing long-term enjoyment. For example, we have added in new dungeons, etc., improved

*Famitsu Game White Paper 2022

1. Maximization of Existing Values

GungHo strives to cultivate existing titles such as "Puzzle & Dragons" and "Ragnarok" into game brands that provide long-lasting fun for users.

game content, collaborated with famous characters from other companies, and held large-scale appreciation fairs. As a result, MAU numbers remained solid and the game reached 60 million total downloads in Japan on November 5, 2022. Going forward, we will continue to work towards boosting engagement of the game's active users.

For "Creation of new values," with regard to "Ninjala," a Ninja Gum Battle Action game for the Nintendo Switch™, we achieved 10 million total downloads worldwide on February 14, 2023, thanks to a wide-range of cross-media efforts, such as updates and collaboration events, the TV anime "Ninjala" (launched on January 8, 2022), and promotional campaigns including television commercials. Going forward, we will continue to work on expanding the "Ninjala" fanbase globally. We have also decided to redevelop "DEATHVERSE: LET IT DIE," a multiplayer survival action game for the PlayStation®5/ PlayStation®4/Steam®, in order to make it into a game that can be enjoyed by a wider range of users.

2. Creation of New Values

GungHo has moved from developing games targeted primarily at the Japanese market to developing "games that can provide new experiences" targeted at global distribution.

Four Basic Strategies

For "Partner publishing," we have continued to work towards increasing engagement of active users through consistent major updates and events for the MMORPG "Ragnarok Origin." In addition, "Ragnarok Online" celebrated the 20th anniversary of its release on

Quarterly Consolidated Business Performance

(Billions of yen)

December 1, 2022, and we will continue to fully leverage this long- 21.8 term operational experience and knowhow in all our titles.

For "Subsidiary business," Gravity Co., Ltd. and its consolidated subsidiaries have published Ragnarok-related titles globally and are conducting continuous updates and events. Furthermore, "Ragnarok Origin," which was newly released in Taiwan, Hong Kong, and Macau on September 15, 2022, has been performing well and contributing to the consolidated business performance.

We shall continue to push through with the above initiatives going forward to further increase our corporate value.

Kazuki Morishita

President & CEO

3. Partner Publishing

2020.2Q 2020.3Q 2020.4Q 2021.1Q 2021.2Q 2021.3Q 2021.4Q 2022.1Q 2022.2Q 2022.3 Q 2022.4Q

Net Sales by Region

(Billions of yen)

Utilizing over 20 years of experience in online game operation, GungHo publishes titles from other developers, as well as titles that incorporate IP of other companies.

3.6

1.4

2021.12 2022.12

4. New Fields

GungHo researches and develops new areas with the anticipation of expanding markets for games, in order to provide brand-new user experiences.

AI

Our Group aims to become the "World's Top Entertainment Company" and "Deliver joy and wonder"

to the world through these four strategies.

■ Net sales ■ Operating profit

■ Japan ■ Asia ■ North America ■ Other Regions 5.01.5

Next-gen consoles

VRAR

1

Creation of New Values

Firm user activitythrough diverse promotional campaigns

"Ninjala"

SPEC

Title

Ninjala

Genre

Number of players Platform

Ninja Gum Battle Action 1-8 players (Online play: 2-8 players/Offline play: 1 player) Nintendo SwitchTM

Release date

Digital version: June 25, 2020 Physical version: July 22, 2020

Price

Digital version: Free to play basic game Physical version: 3,980 yen (tax incl.) *Physical version comes with exclusive items.

Available languages

*Some parts of the content require in-game microtransactions. *Nintendo Switch Online subscription not required for online play Japanese, English, French, Italian, German, Spanish, Traditional Chinese, Simplified Chinese, Korean

"Ninjala," which was released globally on June 25, 2020, launched a TV anime starting in 2022, aiming to attract even more users. In order to provide content that is more enjoyable for users and to develop the games we have created into IPs that will be popular for years to come, we will continue with our active cross-media efforts in addition to game development. We have worked to increase user activity through collaboration events with famous IPs, updates with changing seasonal themes, and tournaments and competition events where users compete with each other. As of February 14, 2023, the game has reached 10 million total downloads worldwide and has acquired many users, primarily among the younger demographic.

Continuous seasonal updates, in-game collaboration events, and new battle events

Collaborations with famous IPs!

Promoting media mix as an IP-strengthening initiative

TV Anime "Ninjala" now on air!

©GungHo Online Entertainment, Inc., TV Tokyo Corporation

©GungHo Online Entertainment, Inc. ©Yoh Kanebayashi/ Shogakukan

Service suspension and redevelopment of

"DEATHVERSE: LET IT DIE"

In order to improve the basic system and make the game content more enjoyable for a wider range of users, we have decided to temporarily suspend the service on July 19, 2023 to redevelop it. The entire development team will do its best to re-release the product.

See the official website of "DEATHVERSE: LET IT DIE" for details on the schedule until suspension of the service.https://deathverse.com/en/member/news/info/info_service.html

The development team behind "LET IT DIE," a survival action game released in 2016 with over 7 million downloads worldwide, is newly releasing the multiplayer melee survival action game, "DEATHVERSE: LET IT DIE."

SPEC
Title	DEATHVERSE: LET IT DIE
Platform	PlayStation®5 PlayStation®4/PC (Steam®)
Release date	PlayStation®5, PlayStation®4: September 28, 2022
PC (Steam®): October 5, 2022
Price	Free to play basic game
*With in-game microtransactions
Rating	ClassInd 12+, ESRB Teen,
IARC 16+, USK 12,
ACB M, PEGI 16, RARS 16,
GRAC All, GSRMR 12+
Developer	SUPERTRICK GAMES, Inc.
Publisher	GungHo Online Entertainment, Inc.

5 new titles in development!

Smartphone gamesConsole games

5

Maximization of Existing Values

Thanks to your support, "Puzzle & Dragons" celebrated its 11th anniversary!!

Quest for further evolution

"Puzzle & Dragons"

"Puzzle & Dragons" celebrated its 11th anniversary of its launch on February 20, 2023. We have increased user activity by collaborating with famous characters from other companies, holding large-scale appreciation fairs, and providing constant updates. In addition, through various initiatives such as the launch of apps related to "Puzzle & Dragons," sales of console games, development of TV anime, comics, and merchandise, as well as the hosting of eSports events, the game is still enjoyed by many users of all ages today, over 10 years since its launch in 2012. "Puzzle & Dragons" will continue the quest for further evolution in an aim to grow into a game brand that provides long-lasting enjoyment.

Large-sale appreciation fair, 60 million download commemorative events, and collaborations with famous characters!

Diverse developments to strengthen IP

Titles related to "Puzzle & Dragons," anime airing, and eSports initiatives

For Nintendo SwitchTM

"PUZZLE & DRAGONS Nintendo Switch Edition"

Over 100,000 downloads!

+297 Project

To commemorate the 10th anniversary of "Puzzle & Dragons" in 2022, we developed a collaborative product project featuring +point 297, boosting the excitement of the anniversary year from outside the game as well.

©Eiichiro Oda/2022 One Piece Production Committee

Collaboration watches with custom watch brand UNDONE

©Eiichiro Oda/SHUEISHA Inc., Fuji Television Network, Inc., TOEI ANIMATION CO., LTD.

TV anime "Puzzle & Dragons"

Airing every Sunday evening from 6:00 p.m. on 6 TV Tokyo networks

©Hirohiko Araki & LUCKY LAND COMMUNICATIONS/SHUEISHA Inc., JoJo's Bizarre Adventure THE ANIMATION PROJECT ©UNDONE ©GungHo Online Entertainment, Inc. All Rights Reserved. ©2023 KADOKAWA Game Linkage Inc.

eSports initiatives

"Puzzle & Dragons" final at the National Prefectural Competitive Esports Championship 2022 TOCHIGI

Official art book featuring popular monster illustrations

"Ragnarok Online" 20th anniversary "Princess Punt Sweets" 10th anniversary

Nurtured and loved by our users, we are proud to have reached this milestone year. We will continue to leverage this long-term operational track record and knowhow in the operation of all our titles, as well as in the creation of captivating game content that will be well-loved and enjoyed for a long time to come.

"Ragnarok Online"

The service was launched in 2002, when online gaming was not as common as it is today. This MMORPG title can be said to be the starting point of various game titles at GungHo.

20th anniversary event

"Dream Star Grand Prix 2022"!

20th anniversary special websitehttps://ragrarokonline.gungho.jp/special/ 20th-anniversary-project/

Collaboration with the Sanrio character "Cinnamoroll,"

which is also celebrating its 20th anniversary!

Sold 20th Anniversary Package with new items and more!

significantly. It is an action puzzle RPG featuring

©'23 SANRIO CO., LTD. APPR.NO. L637326

20th anniversary on December 1, 2022

20th

ANNIVERSARY PACKAGE

10th anniversary on November 19, 2022

"Princess Punt Sweets"

Partner Publishing

SPEC

"Ragnarok Origin"

Stable MAU achieved through providing continuous updates

For "Ragnarok Origin," through optimizing GungHo's knowhow accumulated through operating "Ragnarok Online," we have implemented measures to increase player longevity through constant major updates and seasonal events.

Implemented major update, "Inherited Wisdom"

Title Genre Price

Ragnarok Origin MMORPG

Free (some items require in-game microtransactions)

Release date

June 28, 2021

"Ragnarok Online"

SPEC

Extensive content and constant updates

Title Genre Price Release date

Ragnarok Online MMORPG 1,500 yen (tax incl.)/30 days December 1, 2002

for both long-term users and newly-registered users.

This title offers a high degree of freedom typical of MMORPGs as well as a vibrant community. With constant updates and events to implement new stories and professions, the service is still loved by many users today, over 20 years since its launch.

New story update,

"The Double Goddess - Direction of Prayer "

Seasonal events

7

Subsidiary Business

Gravity Co.,Ltd.

"Ragnarok"

Steady performance due to series development

The "Ragnarok" series, which is being distributed globally by subsidiary Gravity Co., Ltd., is particularly popular in Asia. The development of abundant series has resulted in steady performance and has contributed significantly to the Group's business performance.

Major titles released in the second half of 2022 and beyond

"Ragnarok Monster's Arena"

"Ragnarok Monster's Arena," a card SRPG game for mobile devices, was released in Southeast Asia on December 8, 2022.

Service areas

Taiwan, Hong Kong, Macau (May 11, 2022)

Thailand (September 1, 2022), South Korea (September 27, 2022)

Southeast Asia, Middle East, Oceania, etc. (December 8, 2022)

Titles scheduled for release in 2023

"Ragnarok Origin"

2Q 2023

Scheduled for global release in Southeast Asia and other regions (mobile, PC)

©Gravity Co., Ltd. & Lee MyoungJin (studio DTDS). All rights reserved. ©Gravity Co., Ltd. All Rights Reserved.

"Ragnarok Origin"

"Ragnarok Origin," an MMORPG with strong elements of Ragnarok Online, was newly released in Taiwan, Hong Kong, and Macau on September 15, 2022.

Service areas

South Korea (July 7, 2020) (mobile)

Japan (June 28, 2021) (mobile)

North America (November 10, 2021) (mobile)

Taiwan, Hong Kong, Macau (September 15, 2022) (mobile, PC)

"Ragnarok X: Next Generation"

The MMORPG "Ragnarok X: Next Generation" for mobile devices was released in South Korea on January 5, 2023.

Service areas

Taiwan, Hong Kong, Macau (October 15, 2020)

Southeast Asia (June 18, 2021)

South Korea (January 5, 2023)

"Ragnarok The Lost Memories"

1H 2023

Scheduled for release in Taiwan, Hong Kong and Macau (mobile)

"Ragnarok M: Eternal Love"

1H 2023

Scheduled for release in Vietnam (mobile)