Q&A Regarding 2Q of the Fiscal Year Ending March 31, 2023 (Summary)
These Q&A items cover the main questions asked by investors at the financial results briefing. Somequestions have been revised for ease of understanding.

Q1. In the Production Services business, major U.S. video streaming service
providers have seen a slowdown in membership momentum due to inflation anda weakening of nesting-related demand. Please provide some quantitative data on
the outlook for the industry.
A. We would like to refrain from disclosing quantitative data at this time, but would liketo reiterate our thoughts on the outlook of the industry, which we provided at the earlier
briefing.
1. In the U.S., new video streaming platforms are increasing, led by major Hollywood
studios. Competition for members is becoming increasingly intense.
2. Until now, the mainstream approach has been to distribute works from Englishspeaking countries worldwide, but recently there has been a movement to distributeworks from non-English-speaking countries, such as South Korea.
These two developments have led to a significant increase in the number of works
and languages distributed, which is providing a tailwind for our E2E service. At thesame time, it is true that the revenue model of video streaming service providers isundergoing change, as seen in the emergence of advertising-supported models
aimed at preventing slowdowns in the growth rate of subscriber numbers. We
recognize the need to closely watch what effects this will have on investment inoriginal works.

Q2. For each segment, what is the current situation of orders and what is thefinancial results forecast for the year?
A. We would like to refrain from giving a specific answer on the current situation oforders at this time, but we will respond regarding the outlook by segment through thesecond half of the year.
1. Content Creation business: Orders for feature films, dramas, and anime production
are favorable overall, despite delays in some works. In particular, 3Q will see deliveryof Season 2 of Alice in Borderland for Netflix. Regarding TV commercial productions,
there have been many reports of anticipated deterioration of performance in the
manufacturing industry due to factors including the rising cost of raw materials
against a background of high resource prices and the weak yen. We have aconservative outlook for orders for TV commercial production in 4Q.

Q&A Regarding 2Q of the Fiscal Year Ending March 31, 2023 (Summary)
These Q&A items cover the main questions asked by investors at the financial results briefing. Somequestions have been revised for ease of understanding.

2. Production Services business: There is no change in the trend of increasing salesof video streaming E2E services (overseas), but we expect the rate of increase insales to slow from 4Q. In the first half of the fiscal year, we were able to significantly
grow net sales due to new video streaming platforms in the U.S. placing strong orders
for localization services for past titles (about double the level of the previous year).
At the same time, we expect that these orders for past titles will slow from 4Q, andorders for new, original works will take center stage. Domestically, TV programmingand post-production services for TV commercial production are performing well, but
we do not expect to reach the strong growth in orders that occurred last year underrecovery from the COVID-19 pandemic.
3. Imaging Systems & Solutions business: In high-speed cameras, whether we will
be able to stably procure semiconductors in the second half remains unclear. However,
we expect sales of optical measurement and image processing LSIs to remain strong,as was noted in the briefing.

Q3. Looking at the market as a whole, it seems that monetizing of business has
yet to occur in the metaverse. Can you speak about the Company's vision fromhere on out?
A. We are working on experiential theme parks as part of our live entertainment
business, with the metaverse a part of this.
We are currently working with various partners including Tokyo Girls Collection, Pia,
Tokyo eSports Gate, and Mori Building on new initiatives aimed at developing businessmodels, and have delivered a number of results. Rather than developing the businesson our own, we will collaborate with leading partners to advance the creation of a live
entertainment business model that incorporates the metaverse.
End.