20 November, 2014
To whom it may concern
Wedge Holdings Co., Ltd.
Tatsuya Konoshita,
Representative Managing Director & CEO(Code 2388 TSE JASDAQ Market)
Contact: Yukihiro Yokoyama, Corporate Officer(Tel: 03-6225-2207)

Explanation of Financial Results for the Period Ended 30 September 2014

Wedge Holdings Co., LTD recently released financial results for the period ended 30 September
2014. We hereby would like to explain concisely our company policy and the financial results forthis year to our shareholders, business partners, and investors for your better understanding.
1. Performance for the present period
Our performance for this period is as stated below.

Net Sales
Operating
IncomeOrdinary
IncomeNet Income

Full-year
actual resultfor 2014

Full-year
actual resultfor 2013

Full-year
forecast for2014

Completion %

5,995

4,875

123.0%

5,700

105.2%

311

791

39.3%

700

44.4%

389

857

45.4%

700

55.6%

80490

16.3%

40

200.0%

Year-onyear

Although the net sales showed favorable growth and the net income exceeded forecast, theoverall income decreased as a result. Below are the factors for these results.
(1) Finance business which has major impact on our financial performance has accomplishedits business expansion. However, our performance was affected by the economic slowdownin Thailand, therefore we had to increase more allowances for doubtful accounts.
(2) New business in entertainment business started to make profit contribution, the sales inJapan domestic continued in a gradual uptrend(3) Both of finance business and entertainment business has actively invested for medium- tolong-term growth. Therefore, investment and development costs increased.
As a result of the above mentioned factors, performances by segment are as stated below.

1Q4 September
2013 period

Q4 September
2014 period

Year-on-year

Sales

4,113,405

5,373,421

130.63%

Segment Profits

979,567

508,71151.93%

Sales

582,972

620,939106.51%

Segment Profits

108,961

149,197136.93%

Segment

FinanceBusiness
EntertainmentBusiness

2. Business policy and activities for this period
In this year, we moved forward with business development activities in both finance businessand entertainment business in order to achieve our medium term business plan “AccelerationPlan”. We hereby explain what we executed.
(1) Finance businessAs we informed on 29 March, 2012, Group Lease PCL (GL) announced the ASEAN Regional
Finance Company Vision (ARFC). (Announcement provided only in Japanese: http://www.wedgehd.com/cms_v2/assets/files/IR/NEWS/2012/i201203292.pdf)
The vision of ARFC made a major shift in a direction of our finance business. Until then, GL’s
business specialized in new motorcycle finance domestically in Thailand. With a new vision, GL
commit to international business expansion to ASEAN (Vision “A”) and diversify its financebusiness new motorcycle (Vision “B”).
Upper part of the following chart shows the new direction and bottom part shows the olddirection.

<1 October, 2013>
Early in this period, as of 1 October, 2013, GL with a long year experience for motorcycle
finance in Thailand, started to provide new motorcycle finance service in Cambodia as the first
finance company and the only financial provider for HONDA who hold a dominant position on theCambodian motorcycle market (Vision “A”).

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<23 January, 2014>
Afterward, as we announced on 6 September, 2013, GL Finance PLC (GLF) signed a businessalliance with SET listed major agricultural machine manufacturer SIAM Kubota Corporation Co.,
Ltd. and initiated the agricultural machine lease on 23 January, 2014 in Cambodia (Vision “A” and“B”).

Furthermore, GL is proceeding with negotiations and other preparations for business expansion
to other ASEAN countries outside Cambodia, where Laos is the next destination.

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<12 June, 2014>
We started operating a new auction facility in Thailand and we managed to be a leading auction
operating company in Thailand. This allowed us to increase our impact on used motorcycle
market (Vision “B”).
http://www.wedge-hd.com/cms_v2/assets/files/NEWS/2014/p20140612e.pdf<18 June, 2014>
GL decided on acquisition of the domestic competitor Thanaban Company Limited. Refer to:
http://www.wedge-hd.com/cms_v2/assets/files/NEWS/2014/p20140618e.pdf (Their acquisition
was successfully completed as we announced.)
By this acquisition, GL, who used to specialize in providing lease finance for new motorcycle
buyers in Thailand, dramatically expanded their current business and penetrate into two newbusiness fields of “ Motorcycle secured Loan (M4C=Moto for Cash)” and “Used motorcycle financelease”. The company is currently undertaking structural reform and making efforts to grow these
two new businesses (Vision “B”).

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Thus, we have now progressed in both Vision A and B aggressively but in a steady manner tomaterialize the vision of ARFC. As you can see by comparing the current chart with the chart
represented for 1 October, 2013, we made a huge step forward for international expansion andmultifaceted expansion within only one year. In our current situation, the rapid expansion could
weight on short-term profit in a sense. However, it is the investment and development costs forour dramatic medium- to long-term growth, and we have continued suitable and meaningfulactivities based on our visions.
(2) Entertainment business
As for entertainment business, building long-term relationship of mutual trust with thecontents holders is considered as the essence of our entertainment business. Based on these
relationships, our business is made of developing various contents into different types of hobbies.
The business is shown in the following formula.

Together with intensifying activities in acquiring more contents, we increased manpower,
reformed personnel affairs for enhancement of creativeness in the company, and taken various
new measures in order to increase the variation of hobbies we can create.
Our business as of 1 October 2013 is shown as below.

5<1 July, 2014>
In entertainment businesses, by utilizing our advantages, some divisions such as trading card
game (TCG) and development and operations support were seen a rapidly growth . Therefore,
we established a new independent card game business division (Card Game Guild).

<1 October, 2014>
At the moment, we continue to deploy other new businesses. In accordance with this, we are
getting new more staff. Also, by improving staff participation, we created internal system to allow
our staff’s passionate and favorites to sublimate into company activities. Keywords for ourmeasures are “Maximizing contents”, “Direct contact to users”, “Fusion of digital and real”, etc.

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Thus, we have worked on various new exploitations for this year in entertainment business andexpanded them furthermore. Financial results for entertainment business showed rapid profit
growth for this year, but it might be just our luck. Our activities hardly cause the similar result
but would rather weigh on short-term profit. However, we will continue investment anddevelopment to pursuit dramatic long term business growth as our primary goal.
3. Overall review
As explained above, this year is consider a year for business expansion and businessdiversification for both finance business and entertainment business. We will continuously focus
on medium- to long-term dramatic growth, keep unwavering business policy, and expand
business development.
We greatly appreciate your continuing support as our shareholders, business partners,investors, and employee.

Thank you.

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