To whom it may concern

January 30, 2024
Listed Company Name
Representative
Code Number
Contact Person
TEL:

Drecom Co., Ltd.
President and Representative Director: Yuki Naito
3793
Director: Hideki Goto
+81 (0)50-3101-9977

Notice of Revision of Full-Year Earnings Forecasts and Dividend Suspension
After analyzing our results to date, and current expectations, we revised our full-year results forecast as well as ourdividend for the fiscal year ending March 31, 2024.

Notice1. Revision of Earnings Forecasts(1) Revision of consolidated earnings forecast for the fiscal year ending March 31, 2024
(April 1, 2023 - March 31, 2024)
Net income
OperatingOrdinary
attributable toNet sales
incomeincomeowners of theparent
Million yen
Million yen
Million yen
Million yen
Previous forecast (A)11,5005004500
Revised forecast (B)

10,000

800

700

100

Increase (Decrease)(B-A)-1,500

300

250

100

Increase (Decrease) (%)

-13.0

60.0

55.6

-(Reference) Results forfiscal year ending March31, 2023

10,800

2,281

2,192

1,159

Net income
per share
Yen
0. 0
3.51

40.70(2)Reason for revision
We revised our forecast, as the revenue from existing operational titles, mainly our flagship titles, exceededexpectations. However, we have excluded contributions from new in-house releases in our projections because weare currently dedicating time to user testing, bug fixes, and additional development for content expansion to ensurea state of readiness. These activities are not expected to contribute to revenue until after their releases. The
estimated contribution to net sales from new self-distributed titles for the fiscal year ending March 31, 2024,
including titles already closed, has been revised from 1,784 million yen in the previous forecast to 14 million yen.

The forecast for operating income and ordinary income, as with net sales, does not include contributions from therelease of new self-distributed titles, but has been revised upward due to the upswing in existing titles undermanagement and other factors.
Net income attributable to shareholders of the parent company has been revised due to an increase in operating
income and ordinary income.
Furthermore, as announced in the “Notice of Recording of Operating Expenses and Extraordinary Losses, Revision ofFull-Year Earnings Forecasts, and Revision of Dividend Forecasts for Consolidated Subsidiaries (announced on July 27,2023)" and "Notice of Recording of Operating Expenses and Extraordinary Losses (announced on October 26, 2023)",
the Company closed two newly released titles and decided to terminate the development of one title that had not
yet been announced or was in the prototype stage and recorded an extraordinary loss of 609 million yen.

(Note) The above forecasts are based on information available as of the date of publication of this document, andactual results may differ from these forecasts due to various factors.
2. Revision of Dividend Forecast(1) Revision of dividend forecast for the fiscal year ending March 31, 2024
Annual dividend (yen)End of second quarterEnd of period
Previous Forecast

undecided

undecided

Revised Forecast

0.00 yen

0.00 yen

5.00 yen

5.00 yen

Actual results for fiscal
year ending March 31,
2024
Actual results for fiscal
year ending March 31,2023
(2)

Total

0.00 yen
0.00 yen

Reason for revision
The Company recognizes that returning profits to shareholders is one of its most important management issues,and decides on the level of profit distribution after careful consideration of trends in operating results and financialcondition, as well as the status of R&D investment and other activities and future plans.
With respect to the year-end dividend forecast for fiscal year ending March 31, 2024, we regret to announce that
we have revised our forecast to pay no dividend due to the increasing need for funds for the development of new inhouse distribution titles and the launch of new business areas other than games for the purpose of developing andnurturing IP.
End of notice