Financial Results Briefing Material for the Fiscal Year Ended July 2020 Bushiroad Inc

Financial Results Briefing Material for the Fiscal Year Ended July 2020 Bushiroad Inc. Securities code: 7803 September 14, 2020

©bushiroad All Rights Reserved. Table of Contents ・ Financial Results Summary for the Fourth Quarter of the Fiscal Year Ended July 2020 ・ Financial Results Summary for the Fiscal Year Ended July 2020 Summary Income Statement (Consolidated) [Full year] Change in Financial Results by Segment Net Sales Composition by Department [Quarter] Change in Consolidated Financial Results Change in Net Sales by Segment Change in Operating Profit by Segment [Fourth quarter] Topics Change in Net Sales by Department ・ Initiatives ・ References

Card Game Shiyoko

©bushiroad All Rights Reserved. 3 Financial Results Summary for the Fourth Quarter of the Fiscal Year Ended July 2020 Although the Live IP business continues to be in a difficult situation, the consolidated surplus was achieved again due to the contribution of the digital IP business such as the recovery of the TCG Dept.

YoY Financial Results Net sales 7,776 million yen 8,653 million yen (-10.1%) for the Fourth YoY Operating profit 496 million yen 558 million yen (-11.1%) Quarter of the Ordinary profit 550 YoY Fiscal Year Ended million yen 509 million yen (+8.1%) Profit attributable to owners of parent 320 YoY July 2020 million yen 349 million yen (-8.3%)

The TCG Dept. bottomed out from the decline in net sales and profits in 3Q and showed a recovery trend, and the MOG Dept. remained at the same level as in 3Q where it achieved record-high net sales. Segment profit increased year on year due to the cancellation of large-scale real promotional events held in the same period of the previous year due to COVID-19. Digital IP business YoY Net sales 6,172 million yen 6,187 million yen (-0.2%) YoY Segment profit 595 million yen 462 million yen (+28.8%)

Since late June, we have actively held events combining live audiences and online distribution, but due to the cancellation or postponement of almost all live shows, performances, and events in May and early June, both net sales and profit continued to face a difficult situation as of the end of the current quarter. For the Music Dept., the strong performance of Live IP business music software such as “BanG Dream!” album CDs contributed to both net sales and profit. YoY Net sales 1,604 million yen 2,466 million yen (-35.0%) YoY Segment profit -105 million yen 98 million yen

* For segment profit, the adjustment amount of inventories is omitted. * From 3Q of the current fiscal year, the results of Theater Company Hikosen and Sopratico are recorded in the Live IP business.

©bushiroad All Rights Reserved. 5 Summary Income Statement Net sales increased and profits decreased year on year. (Consolidated) Both net sales and profits exceeded the revised forecast ● For the current quarter, due to the recovery of the Digital IP business, we returned from consolidated deficit in 3Q to the black for each profit item. For the full year, net sales increased, and profits decreased year on year, and finally, net sales were the same as the revised full-year financial forecast and each profit item exceeded the forecast. ● SG&A expenses for the current quarter decreased significantly due to the effects of ongoing cost reduction as a measure against COVID-19. ● The consolidated financial forecast for the fiscal year ending July 2021 is undecided because rational calculation is difficult. It will be announced as soon as calculation becomes possible.

Financial forecast FY2020 4Q FY2019 4Q YoY change rate FY2020 full year FY2019 full year YoY change rate Unit: million yen progress rate

Net sales 7,776 8,653 -10.1% 33,000 32,175 +2.6% 100.0%

Gross profit 3,165 3,686 -14.1% 14,416 14,645 -1.6% -

Selling, general and 2,669 3,128 -14.7% 11,706 11,587 +1.0% - administrative expenses Advertising expenses 1,148 1,127 +1.9% 5,105 5,003 +2.0% - Sales promotion 180 589 -69.4% 1,225 1,644 -25.5% - expenses

Operating profit 496 557 -11.0% 2,710 3,058 -11.4% 104.2%

Operating profit margin 6.4% 6.4% +0.0 pt 8.2% 9.5% -1.3 pt -

Ordinary profit 550 508 +8.3% 2,755 3,031 -9.1% 105.9%

Ordinary profit ratio 7.1% 5.9% +1.2 pt 8.3% 9.4% -1.1 pt -

Profit attributable to owners 320 349 -8.3% 1,551 1,799 -13.8% 103.4% of parent

* The financial forecast progress rate is the ratio to the revised full-year financial forecast disclosed on July 22, 2020. ©bushiroad All Rights Reserved. 6 Change in Full-Year Financial Results by Segment Legend Digital IP Live IP

Change in Net Sales Composition Change in Operating Profit Composition (Consolidated) (million yen) (million yen) (Consolidated) 35,000 3,500

30,000 8,761 8,587 3,000 7,174 1,200 25,000 2,500 1,194 724

20,000 2,000 23,415 24,413 21,715 1,901 15,000 1,500 1,736 1,962

10,000 1,000

5,000 500

0 0 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020

* Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. * Segment sales are sales to external customers.

● The TCG Dept. saw a decrease in net sales as in the previous fiscal year, but the MOG Dept. saw significant growth, resulting in an overall increase in net sales. The strong performance of the MD, Sports, and Music departments in the first half covered the weakness of the TCG, Sports, and Music departments exposed by COVID-19 in the second half. ● Bushiroad Music Inc., a subsidiary operating the business of the Music Dept., achieved record-high net sales and ordinary profit as in the previous fiscal year. Although impacts were seen from COVID-19, including the suspension of TCG shipments for about one month, subsidiary Bushiroad International Pte. Ltd. achieved record-high ordinary profit due to the expansion of overseas business. Change in Net Sales Composition (Consolidated) Year-on-Year Net Sales Analysis (Consolidated) (million yen) Legend 28,890 32,175 33,000 (million yen) 35,000 229 278 34,000 TCG Dept. 529 3,565 30,000 459 3,404 161161 33,000 3,447 -205 33,000 2,040 5,021 -312 -49 MOG Dept. 5,333 25,000 32,175 4,891 1,649 MD Dept. 1,854 32,000 1,086 4,163 20,000 2,232 3,634 Media Dept. 31,000 15,000 7,394 7,433 10,880 Sports Dept. 10,000 30,000 Music Dept. -2,746 5,000 10,808 10,239 29,000 7,493

Other 0 28,000 FY2018 FY2019 FY2020 FY2019 TCG MOG MD Media Sports Music Other FY2020

* Net sales for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation.

©bushiroad All Rights Reserved. 8 Change in Quarterly Consolidated Financial Results Legend Net sales Ordinary profit Ordinary profit ratio (million yen) 10,000 Sales of “BanG Dream!” live 20.0% MOG is doing well, shows & CDs are strong 9,123 9,000 including new app 8,634 8,652 18.0% distribution 16.5% 8,188 8,306 7,962 8,000 7,794 7,776 16.0% 7,340 7,372 14.7% 7,000 6,766 13.5% 14.0% 6,149 11.4% 6,000 12.0%

Held “BanG Dream!” 5,000 12.2% 9.4% live shows 10.0% 16.5% and reduced sales promotion expenses 4,000 9.1% 7.1% 8.0% 7.8% 5.9% 3,000 6.0% 5.6% Impact of Sales promotion COVID-19 expenses increased 2,000 Anime amortization 4.0% increased due to sole due to multiple large sponsorship real events 1,000 1,224 2.0% 1,211 1,102 1,036 826 724 696 -54 550 0 479 480 508 0.0% -0.7% -1,000 -2.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020

* Net sales and ordinary profit for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation.

9,000 2,907 8,000 2,227 2,466 2,399 2,319 2,102 1,756 1,604 7,000 1,832 1,794 1,488 6,000 1,627 6,407 6,187 6,217 5,860 5,986 6,039 6,172 5,000 5,577 5,790 5,507 5,279

4,000 4,522

3,000

2,000

1,000

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020

* Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. * Segment sales are sales to external customers.

1,200 321 450

1,000 490 502

800 887 208 259 760

600 353 588 565 98 341 513 502 400 324 462 595 338 200 164 120 105 0 -123 -105

-200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020

* Net sales and segment profits for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. * For operating profit by segment, the adjustment amount is omitted.

MD Dept. Established a VTuber Office! Music Dept. Sports Dept. Resumed events with an audience, toward a hybrid profit model!

Subsidiary Bushiroad Creative Inc. established the VTuber office “Irodori Entertainment Post “BanG Dream!,” New Japan Pro-Wrestling, Stardom, and other events were held with an audience. In August, Company” as a new business. It aims to build “BanG Dream! 8th☆LIVE Summer Outdoors 3DAYS” was held with an audience of 4,000 people and a capacity of uniqueness by focusing on characters and stories. about 18,000 people. Over three days, 34,073 people attended in total, including live-viewing from Japan and Auditions are being held to recruit first-phase abroad. members, with recruitment of between one and In addition to the conventional (1) on-site, (2) live viewing, and (3) package sales, we are providing various three Virtual Actors planned. viewing methods such as (4) real-time online distribution and (5) online archive distribution in order to diversify the profit model.

MOG Dept. “BanG Dream! Girls Band Party!” collaborations with companies and local governments are being developed one after another!

By developing numerous collaborations with companies and local governments, we are increasing opportunities for a wider range of people to see our works and characters.

▲ Nissin Foods ▲ Nakano Ward (Location of Bushiroad) ▲ Meiji (at Seven-Eleven from August) ▲ House Wellness Foods (at Seven-Eleven from August)

©NISSIN FOOD PRODUCTS CO., LTD. ©Nakano Ward ©SEVEN-ELEVEN JAPAN CO., LTD. All Rights Reserved. ©HOUSE WELLNESS FOODS Corp. All Rights Reserved. ©BanG Dream! Project ©Craft Egg Inc. ©2020 irodori ent post ©New Japan Pro-Wrestling ©STARDOM ©bushiroad All Rights Reserved. 12 Change in Fourth Quarter Net Sales by Department (1) Digital IP Business ● For the TCG Dept., the new TCG “Rebirth for you” made full contribution from the 4Q, and after June, the impact of decrease in orders due to COVID-19 subsided, resulting in a bottoming out and subsequent recovery trend. ● For the MOG Dept., in addition to the release of “Vanguard ZERO” and “Lost Decade” in the current period, existing apps continued to perform well, resulting in net sales at the same level as the previous quarter where record-high sales were achieved. ● In the Digital IP business as a whole, both YoY and QoQ finally remained almost unchanged. ● For the full year, net sales increased by 4.3% YoY due to increase in the MOG Dept. that outweighed the decrease in the TCG Dept. Legend (million yen) Change in Net Sales by Department in the Digital IP Business TCG Dept. 7,000 90 133 64 54 310 34 21 88 YoY QoQ 6,000 53 434 327 111 22 471 359 61 403 527 986 314 536 841 343 909 MOG Dept. 5,000 223 756 1,228 1,209 52 426 340 886 911 1,202 YoY QoQ 228 4,000 385 1,897 1,918 1,921 1,930 1,827 1,762 MD Dept. 1,912 1,979 2,442 3,147 3,000 1,656 3,311 YoY QoQ 2,000 3,121 Media Dept. 2,705 2,730 2,526 2,735 2,590 2,200 2,374 2,254 1,000 2,065 1,803 YoY QoQ 1,369 0 Other 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020

* Net sales for each quarter of the fiscal year ended July 2018 were not audited by an audit corporation. ©bushiroad All Rights Reserved. 13 Change in Fourth Quarter Net Sales by Department (2) Live IP Business

● The Music Dept. canceled or postponed most of the events in the quarter or switched them to be online, resulting in lower live-related sales than in the previous quarter. On the other hand, music software performed well, with the shipment of a total of about 100,000 copies of Poppin’Party’s second album “Breakthrough!” and Roselia’s second album “Wahl,” resulting in sales covering the decline in live-related sales. ● For the Sports Dept., almost all performances were canceled or held without spectators from May to June, and mainly held with a small number of spectators in July, resulting in even lower performance sales than in the previous quarter (normally held in February, and canceled in March and April). MD sales and content sales were on a par with the previous quarter due to the resumption of performances and the resulting resumption of the provision of new video content.

(million yen) Change in Net Sales by Department in the Live IP Business Legend 3,000

2,500 Music Dept. 1,102 2,000 1,029 1,155 851 YoY QoQ 857 745 472 329 1,500 435 389 779 832 Sports Dept. 1,000 1,804 1,359 1,369 1,464 1,356 1,436 1,467 1,192 1,243 YoY QoQ 500 1,097 976 772

0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fiscal year ended July 2018 Fiscal year ended July 2019 Fiscal year ended July 2020

©bushiroad All Rights Reserved. 15 Major IPs That Bushiroad Group Is Currently Working On “BanG Dream!” achieved sales of over 10 billion yen for the first time Other Number of Years of In-house IP companies’ IP Major IP Continuation Legend IP-platform-type TCG Years of FY2020 Top Sales IPs continuation IP Category Rebirth 1st year

Stardom 1st year *1 BanG Dream! In-house IP

Assault Lily 2nd year New Japan *2 In-house IP Pro-Wrestling D4DJ 2nd year Cardfight!! In-house IP + *2 ARGONAVIS 3rd year Vanguard original TCG

Girls☆Musical Revue Starlight 4th year IP-platform-type Weiss Schwarz TCG BanG Dream! 6th year Other Love Live! 8th year Love Live! companies’ IP + original TCG

Senki Zesshou Symphogear 9th year Senki Zesshou Other Symphogear companies’ IP From 1972 New Japan Pro-Wrestling 9th year Girls☆Musical In-house IP Cardfight!! Vanguard 10th year Revue Starlight Weiss Schwarz 13th year Prepared based on internally aggregated figures of net sales in the Group. ~ 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ~ * 1 = IP with FY2020 net sales of 10 billion yen or more * 2 = IP with FY2020 net sales of 4 billion yen or more

Anime Start broadcasting TV animation “D4DJ First Mix” from October 2020

MOG Launch mobile online game “D4DJ Groovy Mix” in October 25th, 2020

Anime Start broadcasting TV animation “Assault Lily BOUQUET” from October 2020

MOG Launch mobile online game “Assault Lily Last Bullet” in this winter

MOG Launch mobile online game “Argonavis from BanG Dream! AAside” in next early spring

Payment completion date: August 17, 2020 Funds raised: 5 billion yen Financing to deal with the anticipated next significant impact of COVID-19 in and after November 2020. [Defensive perspective] ・ We began considering the issuance as the contract repayment was about 300 million yen every month for the entire Group and we felt we should increase cash on hand. ・ Low cost and immediate financing with convertible bonds issued at no interest rate. ・ Allotted raised funds to anime production costs such as those for new IP “D4DJ,” “Assault Lily BOUQUET,” existing IP “Cardfight!! Vanguard,” and the film versions of “BanG Dream!” and “Girls☆Musical Revue Starlight.” [Offensive perspective] ・ MOG “D4DJ Groovy Mix,” “Assault Lily Last Bullet,” and “ARGONAVIS from BanG Dream! AAside” are scheduled to be released in the fiscal year ending July 2021, and this is the best financing that can suppress dilution for us by leveraging the asset value of multiple new IPs. ・ While promoting DX (digital transformation) throughout the Group, we also consider M&A and capital and business alliances to be one means, and flexibly execute investment when good investment projects arise.

Number of acquired shares : 341,100 shares (holding ratio 3.89%) Total acquisition price : 449,626,500 yen (excluding fees) Average acquisition price per share: 1,318.16 yen (excluding fees) Acquisition period : From September 25, 2019, to December 23, 2019

Purpose of acquisition

To strengthen the IP developer strategy as well as to build a wide range of cooperative relationships in the business domain, such as licensing-in and rebooting of leading IPs.

Total acquisition price : 61,833,000 yen (excluding fees) Date of acquisition : September 1, 2020 * Acquired 100% of the shares owned by COLOPL, Inc. Through this capital alliance, Social Info, Inc. became our consolidated subsidiary.

Purpose of acquisition By expanding the online advertising function through “Social Game Info” and “Anime Recorder,” which have been well received by the industry, we will set our eyes on the era of COVID-19 and Post- COVID-19 and further strengthen the digital domain which will play an increasingly important role. In addition, in the business of promotion of other companies’ IPs, we will strengthen our ability to transmit information by incorporating it as a medium that Bushiroad Move can provide. We will continue to ensure neutrality as a medium and make maximum use of it as our own medium.

Intellectual Property The Company uses this term to mean entertainment works, characters and a variety of other products.

Bushiroad Group’s business and departments Digital IP business Live IP business TCG Dept. MOG Dept. MD Dept. Media Dept. Music Dept. Sports Dept.

Example of BanG Dream! Project Music Dept. TV commercial

Transportation Media Dept. advertising

Social media

MD Dept. Event

stop stop media mix - Web

One advertisement

TCG Dept. promotion strategies Various About BanG Dream! Project Tsu Recital A project to present a next-generation all-female band through a media mix of anime, games, manga, and real-life concerts performed by voice actresses. Among many music-oriented anime contents, the project is unique in its style that the voice actresses of the characters actually play instruments and perform Distribution live music. Consumers can enjoy the growth of the characters in anime as well MOG Dept. as the real-life musical band through live shows and CDs.

We aim to further enhance our presence in the entertainment market by strengthening our position as a platform company that enhances the value of IPs by leveraging know-how to create in-house IPs and collaborate with other companies’ leading IPs.

IP promotion platform IP

Music Transportation IP MD advertising Program Digital marketing distribution Books / comics IP Live shows / Anime IP Trading card games stages

Mobile online games Web media IP Social media Talent Events IP Acoustics TV commercials

Collaboration with Donation of part of goods revenue Akai Hane Community Chest

In our third collaboration, we’re newly We donated a portion of the revenue from drawn awareness-raising posters and “BanG Dream!” and “Girls☆Musical Revue presenting original Akai Hane Community Starlight” original cloth masks, 2,418,432 yen, Chest collaboration goods to those who to the National Center for Global Health and cooperate in the donation. (Sequentially Medicine, which supports measures against from September) COVID-19. (July 27)

Launched 2,000 fireworks at the Garupa No-Audience Fireworks Festival in early summer During the long-lasting stay-at-home period due to COVID-19, we held a fireworks festival without an audience and broadcast the scenes live as a program to deliver the feeling of summer to our fans. (June 2)

©BanG Dream! Project ©Craft Egg Inc. ©RASTAR GAMES (HK) CO., LIMITED ALL RIGHTS RESERVED ©2017-2020 cover corp. ©ARGONAVIS project. ©bushiroad All Rights Reserved. 25 Enlightenment Activities Video on measures against COVID-19 Video of a lecture on manners for live shows

We produced and posted a video explaining infection prevention measures. We produced and posted a video explaining manners for live shows.

Response to nuisances and slander We will continue to carry out enlightenment activities through various media so that people We are strengthening measures such as publishing press releases, posting articles on news sites, requesting deletion or information concerned can deliver entertainment safely and disclosure to social media, reporting damage to the police, and taking securely and customers can enjoy it. civil and criminal legal measures. We will continue to take responses We will also always deliver entertainment flexibly resolutely. while giving maximum consideration to risks.

Disclaimer

This material has been prepared based on the information available to the Company at the time of its preparation. The Company offers no guarantee of its realization. Furthermore, please note that the material includes financial information based on past financial statements or the like that has not been audited by an independent certified public accountant or audit corporation, or management figures not based on financial statements or the like.