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    ANNUAL REPORT

      To our investors

      mixi, Inc.
      President
      Hiroki Morita

      We operate in two segments: our entertainment business, primarily focusing on smartphone native games, and our media platform business, operating internet-based B2C/C2C services (*1).

      The FY2017 consolidated net sales, operating income and profit are ¥207.161 billion, ¥89.008 billion and ¥59.867 billion, respectively.

      Looking at the internet industry, the smartphone subscription rate increased to nearly 60%, reaching 56.9% (*2) as of March 30th, 2016, and we expect this trend to continue. In this environment, we define our mission as "creating a new culture," with our basic strategy being to constantly create new services focusing on smartphones (*2).

      In our entertainment business, in FY2018, we will work to regain users both inside and outside the application, establish ourselves in areas other than games, such as video content and merchandising, and aim to extend the lifetime of our service by creating new titles. In our media platform businesses, we will expand our business by further strengthening our services and establishing a business model based on a strategy of retaining multiple stable businesses with long lifetimes. We are planning to increase our profits by taking a more active approach to expanding part of our business not only within Japan but also overseas.

      We hope that we can continue to rely on the warm support of our shareholders.

      *1 B2C: (Business to Consumer) A business model in which companies make transactions with consumers.
      *2 C2C: (Consumer to Consumer) A business model that focuses on trade and transactions between consumers. 2 Source: MM Research Institute, Ltd.

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      For Individual Investors

      Here we provide a selection of information that may help in developing a deeper understanding of the mixi Group:

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