Earnings Results Briefing Session

FY2014 Second-Quarter Earnings Result Briefing Session (July 1st 2014 – September 30th 2014)

mixi, Inc. http://mixi.co.jp TSE Mothers 2121

The opinions and forecasts contained in these materials are based on mixi's knowledge as of the time the materials were created. No guarantee of the accuracy of that information is stated or implied. The public should be aware of the possibility that actual earnings may diverge from these forecasts due to changes in any number of factors. 2

Financial condition

・Monster Strike fuels healthy growth in sales and profits

Unit: millions of yen Increase/ FY2014/2Q FY2014/1Q decrease (Jul-Sep 2014) (Apr-Jun 2014) (QoQ)

Sales 22,235 12,718 74.8%

Operating profit 9,696 4,654 108.3%

Recurring profit 9,705 4,636 109.3%

Net profit 6,163 2,919 111.1%

・Monster Strike sales increased 93.5% from previous quarter

Unit: millions of yen 25,000

82 1,497 20,000

15,000 66 1,393 19,447 10,000

88 10,049 5,000 16 1,221 その他 15 1 87 55 239 259 40 ライフイベント 230 231 38 584 3,113 3,283 3,004 2,872 226 218 261 2,390 1,877 1,578 1,476 1,375 コンテンツ 0 1,209 1,208 メディア 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014

* Other: Research business, new business, etc. Life events: Help Wanted business, photo book business, wedding support business (Start of since December 2013) Content: Monster Strike, etc. Media: SNS “mixi" Copyright (C) mixi, Inc. All rights reserved. 5 Cost of sales (Quarterly)

・Outsourcing costs increased because of Monster Strike

Unit: millions of yen 2,500

2,000

1,500

1,000

500

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 Others 155 132 77 52 29 31 33 38 32 29 Outsourcing 179 207 212 176 135 145 401 569 1,068 1,764 Content procurement expenses 44 41 39 39 37 35 35 35 35 34 Personnel expenses for development 330 339 336 335 329 330 267 264 250 262 Depreciation 74 74 80 69 39 38 47 42 22 24 Rental charges 199 187 123 123 123 123 124 137 145 156

・Advertising costs and settlement fees increased because of Monster Strike

Unit: millions of yen

12,000

10,000

8,000

6,000

4,000

2,000

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2012 FY2013 FY2014 Others 298 295 218 270 248 237 225 412 398 412 Settlement fees 414 366 363 318 275 258 348 1,294 3,486 6,439 Rents on properties 137 135 133 137 138 140 137 133 147 142 Outsourcing 120 132 144 185 192 217 166 178 220 244 Advertising 22 24 9 142 15 17 149 941 1,665 2,459 Personnel 671 618 633 627 662 573 552 759 591 568

Business condition

- Content business - Media business - Life events business, other business

Content business

Monster Strike‘s first-ever user event: Monster Strike First Anniversary “Chozetsu” Thank-You Fair in nicofarre

・Event celebrates first year of Monster Strike, with live performance of theme song ・nico nico live broadcast attracts over 1.2 million viewers

Unit: 10,000s of people Launch of North 1600 America version

1400

1200

Launch of Taiwan version 1000

800 Start of TV commercials Launch on 600 Android

400 Launch on iOS 200

0 Oct-2013 Jan-2014 Apr Jul Oct *Number of global downloads as of October 27, 2014 Number of downloads does not include multiple downloads from the same device Copyright (C) mixi, Inc. All rights reserved. 11 Sales ranking

・ Grown to No. 5 top publisher and No. 4 for top apps in global ranking

Sales Ranking

Apr-14 May Jun Jul Aug Sep 1

4 4 4 5 6 6 5 5 6 7

9 11 10

Top Publisher Top Apps

・Popular LINE characters appearing in TV commercials ・New initiatives include outdoor ads and the baseball's first "strike flash ad" TVCM

LINE characters in a classroom LINE characters at a pajama party LINE characters at a Korean barbecue (yakiniku) restaurant Outdoor ads Strike flash ad

・Worked with the Chiba Lotte Marines to launch baseball's first stadium ad linked to "strike" count

・Breaking down barriers between companies and services, featuring characters from each service

＜Monster Strike＞＜LINE POP＞＜Monster Strike＞＜Monster Hunter Hunting Quest＞

Comics Strategy books Magazines

Snacks 1st anniversary goods Seals

・Started production of arcade game “Monster Strike Multi Burst” Aiming for Spring 2015 launch, location testing now under way

©Konami Digital Entertainment ©Konami Digital Entertainment ＜Display＞＜Box Image＞

・Downloads of Taiwan version now exceed 1 million mainly driven by word-of-mouth ・Launch of YouTube channel ・Planning more marketing activities

1 million users campaign Official YouTube channel

North America version South Korea version October 23: Launched mid-November: Planned to launch

Coming Soon…

Europe North America China South Korea Japan Taiwan

Southeast Asia

Media business

・Promoting ”Content” from mixi's 10th anniversary, “Communication” in communities and “Connection” through revival of functions where interest was strong

Visitors → footprints

・Providing content matched to themes ・Providing functionality allowing users ・Linking communities and real events to follow up on visits to their profiles

Aug ust ・Adding access counter functionality

Oct ober

・August 2014: capital tie-up with SmartNews Inc. ・Now jointly developing and testing in-feed native ads

Web Apps

Life events business, other business

Photo Book business Wedding support business Strengthening connections between real and virtual worlds ・Start service “Nohana cards for New Year ・ Providing Machicom portal 2015” "Ekuru" ・Nohana customers reach 900,000 ・Added payment via carrier Help Wanted ads

・Maintaining steady earnings over the long ・Easily create using apps term ・Sold 800,000 cards in last year Other businesses

・Release PoPolly Co-Labo, a chat-style tool for communication between consumers and corporations

Earnings Estimates

・Estimates were revised for both sales and profits ・Year-end dividend projected at ¥49 per share (interim dividend was ¥23, for total estimated annual dividend of ¥72)

Unit: millions of yen Unit: millions of yen

FY2014 65,000 (Apr 2014 - Mar 2015) 55,000 Sales * 100,000 45,000

Operating 35,000 45,000 profit 25,000 Recurring 45,000 profit 15,000 5,000 Net profit 29,000 (5,000) FY13/1H FY13/2H FY14/1H FY14/2H. actual actual actual estimated

Media Content Life events Others Operating profit *Overseas sales of Monster Strike includes Taiwan only.

Appendix

Unit: millions of yen FY2014/2Q FY2013/2Q (end of Sep 2014) (end of Sep 2013) Current assets 38,845 14,711 Non-current assets 4,771 2,769 Total assets 43,617 17,480 Current liabilities 12,278 2,738 Non-current liabilities 9 77 Net assets 31,329 14,664

FY2014/2Q FY2013/2Q (Apr-Sep 2014) (Apr-Sep 2013) CFs from operating activities 11,174 ▲448 CFs from investing activities 237 2,774 CFs from financing activities 312 ▲327 Cash and cash equivalents at end of 28,549 11,247 period

Company name mixi, Inc.

Establishment June 3, 1999

Capital 7.03 billion yen

Location of main office Sumitomo Shibuya First Tower Building 7F, 1-2-20 Higashi, Shibuya-ku, Tokyo, 150-0011

President Hiroki Morita Outside Director Ichiya Nakamura

Director Yasuhiro Ogino Outside Director Tatsuya Aoyagi

Executive officers and directors Director Yuichi Kawasaki Corporate Auditor Takako Kato

Director Shuhei Nishio Outside Corporate Auditor Takayuki Sato

Director and Founder Kenji Kasahara Outside Corporate Auditor Hiroyuki Wakamatsu

Employees 366 (regular employee only)

Total number of shares issued 83,203,000 shares

Kenji Kasahara 47.19%

(individual shareholder) 2.54%

Major Shareholders BNY GCM CLIENT ACCOUNT JPRD AC ISG(FE-AC) 1.52%

Matsui Securities Co., Ltd. 0.92%

MSCO CUSTOMER SECURITIES 0.87% * Besides the above, we own 2,708,000 shares of treasury stocks (3.34%) As of Sep 30, 2014

1997 November Start of operations of “Find Job !” Internet site for Help Wanted business

1999 June Founding of E-Mercury, Inc.

2000 October Reorganization of E-Mercury

2001 February Start of “@Press” for proxy distribution of news releases

2004 February Start of social networking service SNS“mixi”

February Company name changed to mixi, Inc. 2006 September Shares listed on Tokyo Stock Exchange, Mothers Market

2011 April Find Job! spun off as separate company, mixi Recruitment, Inc.

2012 March Established mixi America, Inc. in the U.S.

January Acquired Internet research business, added as subsidiary mixi Research, Inc.

July Established I-Mercury Capital, Inc.

September Established nohana, Inc.

2013 October Start of operations for smartphone games app Monster Strike

November Acquired all shares of Confianza, Inc. converted to subsidiary

December Acquired all shares of Diverse Co., Ltd. converted to subsidiary

December mixi Research, Inc. acquires mystery shopping business

2014 March Received roughly 6.5 billion yen from public offering funded capital increase

Business Units

mixi, Inc. mixi Recruitment, Inc. mixi Research, Inc.

Providing FindJob!,Platform for Providing mixi Surveys Providing SNS mixi and matching companies and job- (smartphone research) and Monster Strike hunting RPG seekers, specializing in Internet mystery shopping services sector personnel

Nohana, Inc. Diverse Co., Ltd. Confianza, Inc.

Online platform for people to Operator of nohana Dating events business, meet new friends and lovers, family photo book service, “Bartown” of operator of youbride and YYC fostering family communication gourmet surprise events through photographs wedding support businesses

Investment companies

I-Mercury Capital, Inc. mixi America, Inc.

Copyright (C) mixi, Inc. All rights reserved. 32 Systems supporting a healthy mixi and Monster Strike mixi systems for keeping the network clean and healthy We are taking further measures to improve the healthiness of our services, mixi and Monster Strike, so all of our users can continue to enjoy them in safety and confidence. In so doing, we hope to contribute to the improvement the health and safety of the Internet community.

SNS“mixi” Monster Strike

Patrolling by humans, systems

24/7

Illicit actions

 Proprietary tools for oversight  Inquiries, comments round-the-clock, every day Investigation and analysis of cheating tools Improved functionality Zoning of young users Education, enlightenment activities through updates Blocking accounts 18

* Checks and responses: supervision and reporting of malevolent users

 Setting up user education content  Access controls based on user age  Took measures against actions that clearly upset the inside services  Ability to block ads, etc. balance of the game, as some users used cheating tools to  Participation in symposia, lectures alter game data and gain illicit access to items and higher levels