Supplementary Material on
Financial Resultsfor Q2 FY12/24(Edition Reflecting Revisions toFull-Year Financial Results
Forecast)

August 19, 2024

The Celsys Group offers total support ofcontent, from production to distribution!

Content Production SaaS
CLIP STUDIO PAINT

Content Distribution Platform
DC3

The Group, with a new system in placefollowing the sale of the UI/UX business in 2023,
is committed to business that offers total
support, from content production (CLIP
STUDIO PAINT), to content distribution (DC3).
Kei Narushima, President

1. Group Topics

1-1. [Before revisions to financial results forecast] Financial resultssummary for Q2 FY12/24

Net sales

Operating profit

4.06

1.10

billion yen

billion yen

Progress: 52.6%

Progress: 66.8%(Before revisions to full-year financial
results forecast)(Before revisions to full-year financial
results forecast)● The Group’s operating profit for the six months ended June 30, 2024 reached a record high● Net sales in the Content Production Solutions business for the six months ended June 30, 2024
reached a record high● As a result of structural reforms (sale of the UI/UX business), sales decreased while profit
increased from the previous FY4

1-2. [Before revisions to financial results forecast] Progress in full-year
financial results
Progress in both sales and profit maintained above 50%.

Financial results Progress

Net sales

4.06 billion yen

Operating profit

1.10 billion yen

Ordinary profit

1.22 billion yen

Profit52%

0.94 billion yen
0%50%

Initial financial results forecast

7.72 billion yen
1.65 billion yen

66%

1.61 billion yen

76%

126%

0.74 billion yen

100%51-3. [After revisions to financial results forecast] Full-year financial results
forecast for FY12/24
The full-year financial results forecast was revised on August 9, 2024
as steady sales and cost control are expected from August onward,
in addition to the financial results until July.
Financial results

Net sales

4.06 billion yen

Operating profit

1.10 billion yen

Ordinary profit

1.22 billion yen

Profit0.94 billion yen

Increase compared
to initial financial
results forecast

Revisedfinancial results
forecast

3.7%

8.00 billion yen

20.1%
31.4%
80.1%

0%
50%
100%
150%
For details: https://www.celsys.com/files/user/pdf/ir/info/2024/info_2024-0809a_en.pdf

1.98 billion yen
2.11 billion yen

1.34 billion yen
200%
61-4. Strengthening shareholder returns: Increased dividends
For the fiscal year ending December 31, 2024, the Company
expects to increase the year-end dividend by 2 yen per share in
addition to the increased interim dividend.

Dividends for FY12/24 (Forecast)Interim dividend

12 yenYear-end dividend

10 yen + 2 yen

Total: 24 yen

The Company recognizes that shareholder returns to the shareholders is an
important management issue, and for dividends, ensuring appropriate financial
soundness based on a dividend payout ratio of 30% or more, strives for mediumto long-term growth through maintaining stable dividends as principle.
24

Dividends (yen)3
FY12/212021年12月期

8
FY12/222022年12月期

12

12
12

FY12/232023年12月期

FY12/24
2024年12月期
7

1-5. Strengthening shareholder returns: Acquisitions oftreasury shares
A total of 2.0 billion yen worth of treasury shares is slated to be acquired toenhance capital efficiency, execute flexible capital policy in accordancewith the business environment, and further fulfill shareholder returns.

Acquisitions of 2.0 billion yen in one year starting
March 1, 2024
Acquired 1.0 billion yen by June 2024

Plan to acquire the remaining 1.0 billion yen
within the period
We will announce the implementation of the purchase in due course.
8

1-6. Progress of capital and business alliance agreements
WEBTOON Entertainment Inc.
Making progress in efforts to improve the efficiency of WEBTOON content
production and translation using CLIP STUDIO, discussions in the AI field,
utilization of DC3 content distribution platform solution, etc., with WEBTOONEntertainment and LINE Digital Frontier.
For details (Japanese only): https://www.celsys.com/topic/20240703

Wacom Co., Ltd.
Working on various projects in collaboration with Wacom Co., Ltd. for Wacom
products, which are essential for creative production. Reporting on the progressof joint development, etc., in which Wacom's solutions and CLIP STUDIO PAINT
collaborate at an event in Germany in June 2024.
For details (Japanese only): https://www.celsys.com/topic/2024062401

Axell Corporation
Engaging in joint development of AI technology.
For details (Japanese only): https://www.celsys.com/topic/20240220
91-7. Preparing to change market listing to the Prime
Market for sustainable growth
As stated in “Notice Regarding Preparations to Apply to Change Listing to thePrime Market of the Tokyo Stock Exchange” disclosed on August 19, 2022,
preparations are currently being made to change the stock listing to the Prime
Market of the TSE, and as of June 30, 2024, the formal requirements for listingon the Prime Market as required by the TSE have been satisfied.

■Prime Market initial listing criteria■Status of the Company

As of June 30, 2024
Satisfaction ofrequirements

Initial requirements
800 or more

Approx. 22,000

Satisfied

20,000 units or more

Approx. 230,000 units

Satisfied

10.0 billion yen or more

20.3 billion yen

Satisfied

35% or higher

65%

SatisfiedMarket capitalization

25.0 billion yen or more

31.3 billion yen

SatisfiedAmount of net assets

5.0 billion yen or more

5.9 billion yen

SatisfiedProfits (Total of the last two years)

2.5 billion yen or more

3.0 billion yen

Satisfied

Number of shareholders
Tradeable shares
Market capitalization of the tradeable shares
Number of tradeable shares101-8. Change in shareholders (planned)
In December 2021, the Company entered into a capital and business alliancewith WEBTOON Entertainment, which was listed on Nasdaq in June 2024.
WEBTOON Entertainment globally provides services such as LINE MANGA in
Japan and NAVER WEBTOON in Korea, and its affiliated companies, LINE
Digital Frontier and eBOOK Initiative Japan, are the Company’s shareholders.
LINE Digital Frontier plans to merge with eBOOK Initiative Japan in anabsorption-type merger as of September 1, 2024, and become a major
shareholder of the Company.

LINE Digital Frontier
Voting right ratio: 5.5%

eBOOK Initiative Japan
Absorption-typemergerVoting right ratio: 4.6%

Voting right ratio: 10.1%
112. Financial Results Highlights

2-1. Consolidated statement of income
Unit: millions of yen

Period comparison (from January to June)
FY12/23

FY12/24

YoY

Financialresults

4,253

4,060

-4.5%

Excluding
UI/UX
business

3,541

4,060

+14.7%

Operating profit

729

1,105

+51.6%

Ordinary profit

736

1,228

+66.9%

Profit

-92

943

ｰ

Net
sales

Topics● Net sales in 1H FY12/24 excluding UI/UX business, where the transfer was finalized in 2023, reached arecord high*Net sales from the UI/UX business in 1H FY12/23 were 712 million yen

13

2-2. Comparison of revised financial results forecast andactual financial results
Actual financial results exceeded 1H FY12/24 forecast, which was revisedon June 26, 2024, for both sales and profit.
Unit: millions of yen

FY12/24

FY12/24

1H financial
results

1H initial plan

1H revised plan

ChangeNet sales

3,816

4,027

4,060

+0.8%

Operatingprofit

664

1,001

1,105

+10.4%

Ordinary
profit

641

1,055

1,228

+16.4%

Profit

254

802

943

+17.6%

14

2-3. Consolidated balance sheet
End of the previous fiscal year
(December 31, 2023)
AmountRatio

Unit: millions of yen

End of the consolidated six months under review(June 30, 2024)
AmountRatio

Change from end of
previous fiscal year

Current
assets

6,929

81.0%

6,094

72.4%

-835

Non-current
assets

1,621

19.0%

2,323

27.6%

701

Total assets

8,551

100.0%

8,417

100.0%-133

Current
liabilities

1,432

16.8%

1,964

23.3%

532

Non-current
liabilities

458

5.4%

504

6.0%

45

Total
liabilities

1,891

22.1%

2,469

29.3%

577

Total net
assets

6,660

77.9%

5,948

70.7%

-711

Total liabilities
and net assets

8,551

100.0%

8,417

100.0%-133

Details of main increases and decreases● Current assets:

Cash and deposits-391 million yen● Non-current assets:

Investment securities

694 million yen● Net assets:

Treasury shares-992 million yen

Shares of Axell Corporation andtreasury shares were acquired
Shares of Axell Corporation wereacquiredTreasury shares were acquired15

3. Financial Results Forecast For FY12/24

3-1. Financial results forecast for FY12/24
Unit: millions of yen

FY12/24 (Forecast)

FY12/23First half

Net sales

OperatingprofitFull year

First half
(financial
results)

Full year(Initial)

YoY(Full year)

Full year(revised)Content
Production
Solutions

3,034

6,007

3,538

6,676

6,961

+15.9%

Content
Distribution
Solutions

507

1,012

521

1,047

1,048

+3.5%

UI/UX

712

1,071

-

-

-

-

Total

4,253

8,091

4,060

7,723

8,009

-1.0%

Content
Production
Solutions

1,160

2,177

1,463

2,529

2,746

+26.1%

Content
Distribution
Solutions

-327

-744

-358

-873

-755

-

UI/UX

-104

-79

-

-

-

-

Total

729

1,352

943

1,655

1,988

+47.0%●Business of the UI/UX business was transferred on August 1, 2023.
●The Company revised financial results forecast for the 1H FY12/24 on June 26, 2024.
●The Company will closely pay attention to business progress and promptly disclose any revisions as necessary.
*Net sales by business field and operating profit by business field are both adjusted within the Group, and so there is a difference between the total value bybusiness field and the consolidated total value of the Group.

173-2. Sales forecast and progress for FY12/24
Increase due toSales
of UI/UX business revision
2023年8月に譲渡した
UI/UX事業売上分
transferredin August 2023

millions of yen
9,000

FY12/24

8,000
7,000
6,000
5,000
1H

4,000
3,000
2,000
1,000
0

FY12/19

FY12/20■ Financial results excluding UI/UX business

FY12/21

FY12/22

FY12/23

FY12/24 forecast■■実績
UI/UX business■ 2024年12月期予想■ FY12/24 Initial forecast ■ 1H FY12/24 financial results●Expected to achieve 8,009 million yen in FY12/24●Reached 4,060 million yen in 1H FY12/24, progress of 50.7%●FY12/23 includes 1,071 million yen of the UI/UX business, where the transfer was finalized in August 202318

3-3. Operating profit forecast and progress for FY12/24
Increase due to revision

millions of yen

UI/UX事業売却
プライム上場準備に伴う一時的な費用増加分

2,000

FY12/24

Assumed temporary loss due to strengthening security

1,800
1,600
1,400
1,200

1H

1,000
800
600
400
200
0

FY12/19

FY12/20■ Financial results

FY12/21■ 実績■ Temporaryloss

FY12/22■■2024年12月期予想
FY12/24 Initial forecast

FY12/23

FY12/24 forecast■ 1H FY12/24 financial results●Expected to achieve 1,988 million yen in FY12/24●Reached 1,105 million yen in 1H FY12/24, progress of 55.6%

19

4. Outline of Each Business Segment
Content Production Solutions BusinessSummary of Celsys Group’s businesses

Content

Production
Solutionsbusiness

Content

Distribution
Solutionsbusiness

Offers support for creators in the graphics industry
and provides SaaS services for content creationworldwide through the illustration, manga, Webtoon
and animation app as well as community sites that
support creation.
CLIP STUDIO PAINT
Services for Creators

Aims to contribute to a world where digital content
is loved even more through solutions related todigital content distribution, such as the DC3
platform, where all digital data is treated as unique“things,” and e-book distribution solutions.
DC3 Solution (Japanese only)
e-book Solutions (Japanese only)4-1. Content Production Solutions business_1
Unit: millions of yen

Period comparison (from January to June)

FY12/23

FY12/24YoY

Net sales

3,034

3,538

+16.6%

Operatingprofit

1,160

1,463

+26.1%

Sales and profit increased due to strong sales of CLIP STUDIO PAINT Version 3.0, which was released in
March 2024, strong domestic and overseas sales, and improved profitability through price revisions ofsubscription contracts and outright purchase license versions.

Financial results indicators for CLIP STUDIO PAINT as of June 2024

● Cumulative shipments

41.61 million units+34.4% YoY● Overseas ratio

80.5%+0.8 Points YoY● Subscription contracts

1.001 million contracts+19.7% YoY● ARR

3.71 billion yen+50.8% YoY
22

4-2. Content Production Solutions business_2
Activity topic (1) CLIP STUDIO PAINT supported languages and overseas usage ratio

Breakdown of units shipped bylanguage

Japanese

Support for 11
languages

over
40.00 million

Used by 英繫体字Traditional
フランス語
Chinese語

French ドイツ語
creators worldwide English
スペイン語
韓国語
GermanKoreanSpanishJapanese/English/Korean/Chinese(Traditional/Simplified)/French/Spanish/German/Portuguese/Thai/Indonesian23

4-3. Content Production Solutions business_3
Activity topic (2) Release of major update of CLIP STUDIO PAINT
Free functional updates of Windows/macOS outright purchase license versions of CLIP STUDIOPAINT have been continuously provided for the 10 years since its launch in 2012. The major
update released in March 2024 as well as in 2023 was well received, and the number of shipments
increased, thanks to promotional campaigns in Japan and overseas, resulting in increased sales
and number of users. To coincide with this, pricing was revised for outright purchase license
versions and subscription contracts, with a 20% maximum increase in price.
March 2024
Major update and price revision
Sales and number ofusers

March 2023
First major update

Free functional updates ofWindows/macOS outright purchaselicense versions for 10 years

Ver. 1.0
2012

If major updates arecontinued

If free functional updates arecontinued

IncreaseVer. 2.02023

Ver. 3.0
2024

Ver. 4.0
2025

Time

The price will be revised to match the increased value of services with the release ofcontinued major updates in the future.
24

4-4. Content Production Solutions business_4
Activity topic (3) Measures to increase subscription contracts
Implement promotions to increase subscriptions to CLIP STUDIO PAINT
For the provision of a license for usage via a subscription model, subscription plans may lower the barriers
to using the software by offering the software at a low price, but the short-term sales effectiveness is lower
compared with the one-time purchase versions that collect license fees in lump-sum, one-time payments.
That being said, the aim of increasing subscription model contracts will continue, as stable earnings in themedium to long term are expected to be generated with continued use.
Download version (one-time purchase)

Monthly usage plan* (subscription)

For illustrations

5,900 yen

480 yen per month

24,900 yen

980 yen per month

For producing manga or animation*Monthly contract fee plan for one device

The one-time purchase version, which continues to be sold at the same time as the subscription model,
reinforces the subscription model by contributing income through campaigns that aim to acquire new users
and leveraging the merits of meeting the needs of users who are reluctant to sign subscriptions contracts,
and in doing so, serves to maximize earnings. The one-time purchase version is a provisional model thatallows users access to new functions through adding a subscription contract or by paying for updated
versions.
25

4-5. Content Production Solutions business_5
Activity topic (4) Strengthening AI development investment
Celsys, recognizing the potential of AI technologies ten or more years ago, hascontinued to conduct research and development, and worked to strengthen andfurther deepen investment in the AI field.
Entering a capital participation and strategic
partnership agreement with ax Inc., an industry
leader in the practical application of AI technology,
development capabilities havebeen enhanced.
We also entered into a capital and business alliancewith WEBTOON Entertainment, which globallyprovides services such as LINE MANGA in Japan
and NAVER WEBTOON in Korea, and are indiscussions in the AI field.
*WEBTOON Entertainment was listed on Nasdaq in
June 2024.

Celsys plans to maintain its policy of not incorporating functions using image generation AI
in CLIP STUDIO PAINT. Based on our policy of maintaining the utmost respect for ethics
and rights in creative activities at all times, we will explore how AI technologies can be usedin areas where we can support creators in making their creative activities more enjoyable.
For details: https://x.com/clipstudiopaint/status/1760284266272031138
26

4-6. Content Production Solutions business_6
Activity topic (5) Enable a simple mode to improve the user interface
With the aim of approaching the user base of free programs or programs with limited
functionality in addition to the user base that the Company’s products targeted up to now,
the Company will improve the interface to, in particular, engage with young people, the userbase that competing programs focus on.
Graph of expanded targeted user base through improving the user interface
Availability of functions

More

User base that CLIP STUDIO PAINT targeted up
to nowUser based targeted by free programs andprograms with limited functionality

Expand targeted users byacquiring entry-level
users through improving
the user interface

Less

Number of users
For details (Japanese only): https://www.celsys.com/topic/2023061302
27

4-7. Content Production Solutions business_7
Activity topic (6) Subscription contracts in mainland China
The SaaS version of CLIP STUDIO PAINT started to be provided in the tablet (iPad)market in mainland China from December 2022, and the number of users on
subscription contracts has steadily increased.
In this short period, it was ranked as 7th highest in terms of sales by country on the
App Store, and growth is expected in the future.

Subscription contracts

Free trial period(Three months)
Dec
12月
2022

Jan
1月

Feb
2月

Mar
3月

Apr
4月

May
5月

June
6月

July
7月

2023

Aug
8月

Sept
9月

Oct
10月

Nov
11月

Dec
12月

Jan
1月

Feb
2月

Mar
3月

Apr
4月

May
5月

June
6月

2024

28

4-8. Content Production Solutions business_8
Activity topic (7) Other activities
Increased subscription contracts

Increased overseas users● CLIP STUDIO PAINT bundled with Wacom OLED pen tablet, Wacom Movink 13, forworldwide release● CLIP STUDIO PAINT sponsored DoKomi, the largest Japanese pop culture event inGermany● CLIP STUDIO PAINT sponsored WEBTOON CONCOURS 2024 hosted by WEBTOONFRANCE
Support distribution and creators● New exclusive font family for Webtoon creation “Clip Studio Comic” developed by Celsys and
Iwata● Creator membership of CLIP STUDIO, a support site for creators in the fields of illustrations,manga, Webtoons and animation, reached 8.92 million people worldwide● CLIP STUDIO PAINT made compatible with Apple Pencil Pro, supporting barrel rotation andother functions for more intuitive drawing on the iPad
● The 1st Global Comic Awards, a competition for comic and manga creators around the globe,
was jointly held with pixiv, an illustration communication service with over 100 million users
See here for all activities :https://www.celsys.com/en/irinfo_groupnews/?contents_type=7&pageID=129

3. Outline of Each Business Segment
Content Distribution Solutions Business5-1. Content Distribution Solutions business_1
Unit: millions of yen

Period comparison (from January to June)
FY12/23

FY12/24YoY

Net sales

507

521

+2.8%

Operating
loss

327

358

ー

Activity topics

Sales and promotional activities to promote the use of DC3 Solution● Actual examples of DC3 introduced by service providers
Sales functionality of DC3 content was released in January 2024 for the new monthly
membership platform Creatia, which connects creators and fans of the Toranoana Group● Actual examples of DC3 used by IPs
Collaborated through the use of DC3 with several IPs
・Animations “Astro Note” and “Whisper Me a Love Song”
・Games “El Shaddai” and “Shadow Corridor 2: Ame no Yohira”
・Movie “A Few Moments of Cheers”

Continued development invest towards improving solution quality31

5-2. Content Distribution Solutions business_2
Activity topic (1) What is DC3, which is investing in development?

Towards “Realizing a world where digital content is loved more”
Service A

Service B

Service X

DC3 is a digital content distribution platform solution thatDC3 can be used with a unique program called DC3 Module, bytreats all digital data as unique “things.”

integration with web services of service providers.

Content distributed on DC3 exists as a unique “thing,”

Overall reliability and safety is ensured with compatibility

which enables individuals to own it.

between the DC3 Module which has been integrated into the

Although existing digital content runs into problems

services and Common DC3, which has the functionality ofsuch as disappearing when the service from which ahandling content across services and managing the block

purchase had been made ends, duplication, difficulty inchain.

authentication, and not being able to be used

Also provided is functionality to centrally manage content heldcollaboratively or across services, with DC3, these issues

by users across services, and functionality to partially display

are solved.

content held in 3D.

For details on DC3 (Japanese only): https://www.dc3solution.net/
32

5-3. Content Distribution Solutions business_3
Activity topic (2) Launch of update for DC3

May 2024
Launch of update for the digital content
distribution platform solution
・Improved 3D space functionality for DC3 My Room・Launched DC3 master content registration and editing app
・Added property transfer function for master content

May 2024
Launch of update for various players of Hive
・Enhanced signing function
・Enhanced framing function
For details (Japanese only): https://www.and-dc3.com/news/20240529/
https://www.and-dc3.com/news/20240530/
32

5-4. Content Distribution Solutions business_4
Activity topic (3) Realize compatibility between DC3 and CLIP STUDIO PAINT
A cumulative 40.00 million users

Register works that have been
producedWith the release of CLIP STUDIO PAINT Version 3.0 in March 2024, theDC3 master content registration function was made available to PRO
users as well as EX users to enable even more creators to distribute theirworks with ease

Continue to conduct campaigns to facilitate use of DC3 by creators
For details (Japanese only): https://www.and-dc3.com/news/2024031403/
https://www.and-dc3.com/news/2024031802/34

5-5. Content Distribution Solutions business_5
Activity topic (4) DC3 compatibility for cards/tickets

Hive Ticket Player

Ticket issuing service “Ticket-tier”

The DC3 player “Hive Ticket Player” released in March 2024 makes it so that cards,
tickets, and other rights and licenses can be made into DC3 content. The ticket
issuing service “Ticket-tier” was released in conjunction with this development,
which provides businesses a way to easily handle tickets as DC3 content.
For details (Japanese only): https://www.and-dc3.com/news/2024031402/
35

5-6. Content Distribution Solutions business_6
Activity topic (5) Introduction of Creatia to DC3

Sales functionality of DC3 content was released for the new monthly membershipplatform Creatia, which connects creators and fans of Toranoana Group, the major
support service for sales of self-published works and creators
Creatia is a monthly membership fan club platform that connects creators who create diverse
entertainment, such as Vtubers, streamers, voice actors, and illustrators, with fans.
With the introduction of DC3, creators can sell limited content with added value. In addition, as
income is shared with creators when content is distributed, a further increase in the value of fan
clubs is enabled.
Furthermore, because unauthorized copies of content can be prevented, it is possible to safely
announce one’s creations.

Launch of several services using DC3 Solution are scheduled this period
For details (Japanese only): https://www.dc3solution.net/assets/file/andDC3_News_2024_01_18.pdf
36

5-7. Content Distribution Solutions business_7
Activity topic (6) Collaboration with movie “A Few Moments of Cheers”
Engaged in proposal-based sales activities toward IPs to acquire content that has acompatible affinity with CLIP STUDIO PAINT, such as manga, animation, and games tofacilitate the use of DC3

Example of distributed
content

DC3 My Room

An initiative was taken to distribute free of charge key visuals, scene clips and other items fromthe movie “A Few Moments of Cheers” as DC3 content. Ticket content in collaboration with thiswork are also distributed on CLIP STUDIO MONO.

Plan collaboration with several other IPs for the future
For details (Japanese only): https://www.dc3solution.net/assets/file/andDC3_News_2024_06_14.pdf
37

6-1. Essential activities for FY12/24
Content Production Solutions business● Accelerate overseas development

Meticulous localization and culturalization for countries and regions, such as increasing supported languages● Initiatives to increase subscription contracts

Review the one-time purchase provision model, and increase the use of activation codes through partners to acquire future prospective
customers● Focus on mobile platforms

Expand the user base through strengthening services for tablets and smartphones● Strengthen competitiveness by strengthening compatibility between CLIP STUDIO PAINT and DC3 Solution● Improve the user experience and increase income through major updates● Continue development investment such as creation support functionality that utilizes AI

Content Distribution Solutions business● Promote DC3 development and sales activities● Development towards improving UX for DC3 users● Attract IP content● Acquire customers and partners● Strengthen media exposure38

6-2. To the Shareholders
Monthly progress report
Main indicators are reported monthly on the Content Production Solutions
business and Content Distribution Solutions business.
Report: https://www.celsys.com/en/irinfo_news/contents_type=47

Shareholder benefit system
A shareholder benefit system has been established so many people willhold the Company’s shares in the medium to long term and to deepen
understanding of the Company’s business. Shareholders can continuously
use CLIP STUDIO PAINT EX.
Shareholder benefit (Japanese only): https://www.celsys.com/irinfo_yutai/

IR questionnaire
A questionnaire on IR is posted on the Company’s website. Your opinions
will be used as a reference for future IR activities, such as improving theMonthly progress report.
Questionnaire (Japanese only): https://www.celsys.com/irinfo_questionnaire/

IR online magazine
The latest IR information will be sent to registered shareholders via e-mail.
Online magazine (Japanese only): https://www.celsys.com/irinfo_magazine/39

6-3. Partially revising the shareholder benefit system
From the viewpoint of balancing fair returns of profit to shareholders, shareholder
dividends, and shareholder benefits, the shareholder benefit system will be revised
from 2025.

Before change
Details:

Six-month version of CLIP STUDIO PAINT EX for one device

Applicable shareholders:Shareholders listed in the shareholder register as of June 30 and
December 31 of each year, or shareholders recorded to hold 100
shares (one unit) or more of the Company’s shares.

After change
Details:

Six-month version of CLIP STUDIO PAINT EX for one device

Applicable shareholders:Shareholders recorded in the shareholder register as of June 30
and December 31 of each year, or shareholders recorded to hold
200 shares (two units) or more of the Company’s shares.

The above changes will be applied to shareholder benefits for applicable
shareholders listed or recorded in the Company’s shareholder register asof June 30, 2025.
40

Reference material: Monthly progress of the Content Production
Solutions business■ Rolling three-month average ARR of CLIP STUDIO PAINT subscription sales
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

(Unit: millions of yen)
Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2019

240

259

280

299

318

334

356

393

424

453

481

503

2020

530

556

585

620

668

710

752

811

882

959

1,032

1,084

2021

1,144

1,191

1,242

1,306

1,380

1,436

1,480

1,538

1,595

1,660

1,725

1,768

2022

1,834

1,884

1,966

2,046

2,124

2,173

2,225

2,309

2,375

2,450

2,506

2,545

2023

2,633

2,676

2,746

2,531

2,523

2,462

2,668

2,755

2,956

3,074

3,178

3,236

2024

3,293

3,358

3,439

3,527

3,631

3,713

3,840

Note: A rolling three-month average is used for ARR（abbreviation for Annual Recurring Revenue, expected net sales for one year assuming that all contracts are renewed at the time ofrenewal) as the amount fluctuates due to the fact that the number of business days per month every three months depends on the settlement method (usually 28 business days, but there
are special cases of 35 business days), and because adjustments are made at the end of each quarter, when results are calculated.

41

Reference material: Monthly progress of the Content Production
Solutions business■ CLIP STUDIO PAINT churn rate (paid contracts)
20.0

15.0

10.0

5.0

0.0

Jan

Feb MarApr

May June July Aug Sept Oct

Nov DecJan

Feb MarApr

May June July Aug Sept Oct

Nov DecJan

Feb Mar

Apr

2024

2023

2022

May June July

(Unit: %)

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2022

13.2

11.2

12.4

11.9

11.9

11.5

11.3

11.1

11.2

11.0

10.5

10.5

2023

9.6

8.7

10.3

7.9

17.3

16.5

10.3

10.1

10.0

9.4

8.9

9.5

2024

6.1

5.8

7.8

6.5

4.5

5.3

4.8

Note: This indicator is the customer churn rate based on the number of customers with paid subscription contracts for the SaaS version of CLIP STUDIO PAINT. The rate is calculated
based on the number of cancellations during the month relative to the number of contracts as of the end of the previous month. In cases where one customer has multiple contracts, eachcontract is calculated separately. Due to the nature of the product, which offers monthly contracts that allow customers to use the product as needed, in addition to annual contracts, thesame customer may repeatedly sign and cancel contracts, but the calculation includes all such cases.
Note: The payment system used for subscription fees for Windows and macOS was changed in May 2023 in order to strengthen security to prevent authorized payments not going throughdue to unknown attacks. Although the churn rate temporarily increased significantly due to contracts lapsing at the end of the reregistration period at the end of May with some subscribers
not reregistering, the number of new contracts continued to steadily increase, and from July 2023, remained steady.

42Reference material: Monthly progress of the Content Distribution
Solutions business■ Number of master content in DC3 Solution
3,500
3,000
2,500
2,000
1,500
1,000
500
0

Sept

Oct

Nov

Dec

2023

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

July

Aug

2025

2024

(Unit: units)

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2023

ー

ー

ー

ー

ー

ー

ー

ー

322

630

1,169

1,789

2024

1,948

2,122

2,380

2,772

3,047

3,335

3,637

Note: The number of master content is the total number of all DC3 master content registered in the service integrated with DC3 Solution. Master content is a mold for content in the DC3
universe. Making master content into DC3 content enables each and every content to be unique “things,” as in the real world. Using digital comics as an example, the idea is to createbinding data (master content) based on illustrations, and then print a standalone comic (DC3 content).

43Reference material: Monthly progress of the Content Distribution
Solutions business■ Cumulative number of DC3 Solution transactions
35,00030,00025,00020,00015,00010,000
5,000
0

Sept

Oct

Nov

Dec

2023

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2024

Jan

Feb

Mar

Apr

May

June

July

Aug

2025
(Unit: transactions)

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

2023

ー

ー

ー

ー

ー

ー

ー

ー

266

1,955

5,074

8,910

2024

11,016

12,875

15,90817,212

20,95433,80836,005

Note: The number of transactions include all transactions, such as transfers, granting access rights, etc.

44

Reference material: Monthly progress of Production S business andDistribution S business monthly progress■ Breakdown of rolling three-month average sales of Content Production Solutions business and Content Distribution Solutions business
700
600
500
400
300
200
100
0

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23 24

21 22 23

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

■ Distribution solution
Jan

2021

2022

2023

2024

Feb

Mar

■ Services
Apr■ Tool sales

May

June

■ Subscriptions

July

Aug

(Unit: millions of yen)

Sept

Oct

Nov

Dec

e-books

94

95

93

92

92

96

95

95

94

92

88

77

Services

22

23

22

21

22

24

24

24

22

22

23

23

Tool sales

248

193

272

271

274

257

245

237

232

225

274

213

Subscriptions

95

99

103

108

115

119

123

128

132

138

143

147

e-books

72

71

76

76

76

79

80

81

82

83

84

82

Services

26

27

28

27

26

25

25

27

31

32

30

28

Tool sales

236

191

250

244

246

242

234

230

181

168

159

262

Subscriptions

152

157

163

170

177

181

185

192

197

204

208

212

e-books

83

85

86

88

88

91

88

86

83

83

84

84

Services

28

27

26

24

24

24

23

24

25

26

26

29

Tool sales

276

280

300

310

317

226

206

192

170

162

209

249

Subscriptions

219

223

228

210

210

205

222

229

246

256

264

269

e-books

85

86

87

87

86

86

86

Services

28

32

26

26

22

30

30

Tool sales

263

225

270

289

296

256

242

Subscriptions

274

279

286

293

302

309

320

Note: A three-month moving average is used as Tubers the amount fluctuates due to the fact that the number of business days per month every three months depends on the settlement
method (usually 28 business days, but there are special cases of 35 business days), and because adjustments are made at the end of each quarter, when results are calculated. The
figures may display differences from consolidated financial results, or other indicators, as a product of the inclusion of group-internal sales and the practice of rounding down to the nearest
million yen. Subscriptions are CLIP STUDIO PAINT subscription sales. Tool sales include downloads through the one-time payment model and licenses for corporations. Services include
sales of CLIP STUDIO WEB services. Distribution solution include sales related to e-books.

45

This material is to provide information on the Company’s business, management strategy, and financial results, and is not intended to solicit investment in securities issued by
the Company. In addition, financial data and company data in this material are produced based on data as of August 9, 2024. The opinions, forecasts, etc. stated in thismaterial are based on judgements of the Company at the time of producing the material, and the accuracy and completeness of the information cannot be guaranteed nor
promised, and is subject to change without prior notice in the future.