FY2017 Q3 Earnings Result Briefing Session Mixi, Inc

FY2017 Q3 Earnings Result Briefing Session mixi, Inc. Table of Contents

・Financial Condition

・Business Condition －Entertainment Business －Media Platform Business

・FY2017 Earnings Estimates

・Appendix

Unit: millions of yen

FY2017／Q3 FY2016／Q3 Change FY2017／Q2 (Oct 2016 – Dec 2016) (Oct 2015 – Dec 2015) (YoY) （Jul 2016 – Sep 2016）

Net Sales 56,320 54,933 2.5％ 39,325

Operating 22,227 23,630 ▲5.9％ 14,153 Income

Ordinary 22,261 23,646 ▲5.9％ 13,836 Income

Profit Attributable ％ to Owners of 15,984 15,602 2.4 9,301 Parent

・Segment operating income before depreciation and amortization (EBITDA)

Unit: millions of yen

FY2017/Q3 FY2016/Q3 Change (Apr 2016 – Dec 2016) (Apr 2015 – Dec 2015) (YoY)

Entertainment

Net Sales 131,805 140,303 ▲6.1％

Segment Operating ▲14.3％ Income (EBITDA) 60,255 70,348

Media Platform

Net Sales 11,184 9,981 12.1％

Segment Operating ▲26.2％ Income (EBITDA) 1,484 2,013

・Entertainment：Maintaining a stable, high number of Domestic Monster Strike active users. ・Media Platform：Expansion of multiple stable businesses.

Unit: millions of yen

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2015 FY2016 FY2017 Mediaplatform 2,674 2,782 2,783 2,426 3,078 3,246 3,656 3,462 3,322 3,895 3,967 Entertainment 10,044 19,452 30,528 42,226 47,002 42,025 51,276 55,051 44,022 35,429 52,353

・Outsourcing costs: Increasing with increased sales in the entertainment business.

Unit: millions of yen 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2015 FY2016 FY2017 Outsourcing 1,068 1,764 2,702 3,307 4,482 4,428 5,212 5,076 4,284 3,284 5,990 Personnel expenses for development 250 262 273 383 314 461 358 551 483 649 455 Content procurement expenses 35 34 34 34 34 34 33 33 33 33 34 Depreciation 22 24 29 32 23 25 25 26 19 20 23 Rental charges 145 156 140 168 232 237 237 208 189 197 233 Purchases 1 1 1 1 319 243 1,400 403 321 340 422 Others 31 27 44 29 58 57 170 59 56 45 49

・Advertising costs: Reported 17.3 billion yen for Q3(YTD) and projected 23 billion yen the fiscal year.

Unit: millions of yen 30,000 25,000 20,000 15,000 10,000 5,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2015 FY2016 FY2017 Settlement fees 3,486 6,439 10,210 13,131 14,938 13,429 16,235 16,599 13,632 11,095 17,454 Advertising 1,665 2,459 2,711 2,924 2,693 4,075 4,299 4,750 5,341 5,776 6,184 Outsourcing 220 244 266 293 376 326 594 217 418 554 531 Personnel 591 568 621 803 843 1,083 929 1,200 951 1,536 970 Rents on properties 147 142 140 139 162 183 189 190 237 291 303 Amortization of Goodwill 72 72 72 72 585 621 544 566 409 409 499 Tax and public charge 35 65 99 181 255 250 257 311 283 254 316 Others 290 274 385 390 413 484 814 589 550 680 622

・Entertainment Business ・Media Platform Business

・Increased media mix programs to new year .

Oct Nov Dec Jan

Large scale 3-year campaign New year campaign promotions

Collaboration with X’mas New year In-Game ☆ ☆ 3-year event “Yu Yu Hakusho” event event

Video （ st ） contents Anime 1 season Monster Strike THE MOVIE

・Mobilized 390,000 visitors in the opening two days, achieving debut 1st place. ・Positive response to connection between anime, film, and game.

Production ： LIDENFILMS／ULTRA SUPER PICTURES／ XFLAG PICTURES Distribution：Warner Bros. December 10 , 2016 Screening in 300 cinemas nationwide

・Finalized project for collaboration with popular game series "FINAL FANTASY" to commemorate its 30-year anniversary.

Coming Soon

Planning to open in May, 2017.

・Entertainment Business ・Media Platform Business

・Expansion of multiple stable businesses with a long lifespan.

Sales Trend of Media Platform Business Unit: millions of yen

4,000

3,000 Others

2,000 Find Job! SNS ”mixi”

Wedding support 1,000 business チケットキャンプ TicketCamp MUSE＆Co.

0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY2015 FY2016 FY2017

One of the Largest Ticket Flea Market Apps in Japan Children’s Photo/Video Sharing App

Released in June 2013 Released in April 2015

・Signed sponsorship contract with ・Broadcasting first TV commercials starting from Pacific League Marketing Corporation (PLM). February. Begin TicketCamp sponsored content on Pacific League ・Over 1 million users with 28 million photos uploaded TV from March. per month (As of January 2017) ・ The GMV steadily expanding along with the number of users

・Downward revision of net sales due to sluggish overseas expansion and performance of some new game titles. Upward revision of profits through major reductions in advertising costs via effective advertising activities. Estimated Q4 entertainment business net sales is approximately 60 billion yen. ・Revised year-end dividend forecast to 91 yen per share, increased by 18 yen from the previous forecast.

Unit: millions of yen Unit: millions of yen FY2017 70,000 (Apr 2016 – Mar 2017) 60,000 Latest Previous 50,000 206,000 218,000 Net Sales 40,000

30,000 Operating 86,000 80,000 Media Platform Income 20,000 Entertainment Ordinary 86,000 80,000 10,000 Operating Income Income

Unit: millions of yen FY2017/Q3 FY2016/Q3 (End of Dec 2016) (End of Dec 2015) Current Assets 135,739 116,730 Non-Current Assets 24,471 23,448 Total Assets 160,210 140,179 Current Liabilities 22,674 35,570 Non-Current Liabilities 156 87 Net Assets 137,379 104,521

FY2017/Q3 FY2016/Q2 (Apr 2016 – Dec 2016) (Apr 2015 – Dec 2015) CFs from Operating Activities 9,275 31,927 CFs from Investing Activities ▲1,419 ▲1,066 CFs from Financing Activities ▲22,997 ▲5,893 Cash and Cash Equivalents at End of Period 111,170 90,380

Company name mixi, Inc.

Establishment June 3, 1999

Capital 9.69 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 Tatsuya Aoyagi

Director Yasuhiro Ogino Corporate Auditor Takako Kato Executive officers and directors Director Koki Kimura Outside Corporate Auditor Takayuki Sato As of Oct 25, 2016 Director and Founder Kenji Kasahara Outside Corporate Auditor Hiroyuki Wakamatsu

Employees 684(regular employee only)

Total number of shares issued 81,879,450 shares

Kenji Kasahara 44.47%

THE BANK OF NEW YORK 1.44%

Major Shareholders STATE STREET BANK AND TRUST COMPANY 1.28% As of Sep 30, 2016 CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW 1.20%

CBLDN-CDSIL AS DEPOSITARY FOR OLD MUTUAL GLOBAL INVESTORS SERIES 1.07% As of Dec 31, 2016

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

February Start of social networking service SNS“mixi” 2004 March Official 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.

July Established I-Mercury Capital, Inc.

September Established nohana, Inc. 2013 October Start of operations for smartphone games app Monster Strike

December Acquired all shares of Diverse, Inc. converted to subsidiary

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

Acquired all shares of MUSE & Co., Ltd. converted to subsidiary March 2015 Acquired all shares of Hunza, Inc. converted to subsidiary

July Received approximately 17.5 billion yen from public offering funded capital increase

Business Units

mixi, Inc. mixi recruitment, Inc.

SNS mixi and Monster Strike Find Job!, a platform for matching companies and job-seekers, specializing in Internet sector personnel

nohana, Inc. Diverse, Inc. Hunza, Inc.

nohana family photo book service, fostering family communication through Matching platform focused on marriage Ticket Camp, a ticket flea-market photographs service

Investment companies

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

Exceed 40 Unit: millions of downloads Million 40

35 Launch of Hong Kong and 30 Macao version Launch of 25 North America version

20 Launch of 15 Taiwan version

0 Oct-13 Jan-14 Apr Jul Oct Jan-15 Apr Jul Oct Jan-16 Apr Jul Oct Jan Domestic Overseas (Taiwan, HongKong, Macau, North America)

*Exceed 40 million downloads worldwide on January 20, 2017 *Number of downloads does not include multiple downloads from the same device ©mixi, Inc. All rights reserved. 25 Systems Supporting a Healthy mixi group mixi group systems for keeping the network clean and healthy We are taking further measures to improve the healthiness of our services, 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

©mixi, Inc. All rights reserved. 26 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.