ディー・エヌ・エー（2432） – Notice Regarding Sale of Investment Securities

The following information was originally prepared and published by DeNA Co., Ltd. in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version. May 10, 2022 Company name: DeNA Co., Ltd. (TSE Prime Stock Code: 2432) Name of representative: Shingo Okamura, President & CEO Contact person: Jun Oi, Member of the Board (CFO) Tel.: 03-6758-7200 Notice Regarding Sale of Investment Securities DeNA Co., Ltd. would like to announce that as of a Board of Directors meeting held today it passed a resolution to sell a portion of investment securities held by DeNA. 1. Reason for the investment securities sale This sale is to be conducted to increase asset efficiency by updating shareholdings for policy purposes. The current status of listed shares held for purposes other than pure investment as of March 31, 2022 is provided at the end of this release. See the Securities Report for FY2020 for more information about previous reductions. 2. Content of the investment securities sale* Types of share for sale: Sale price: *The above amount is an approximation as of this date. After the sale is confirmed if it is determined that amendment is necessary then DeNA will disclose such amendment in a timely manner. Approximately half of DeNA-held Nintendo Co., Ltd. common shares 49.6 billion yen 3. Outlook DeNA and Nintendo have had a business and capital alliance in place since March 2015. The companies have built a relationship of trust and jointly worked on various projects. DeNA is selling a portion of DeNA-held shares of Nintendo. Going forward, the companies will move to the next stage of enhancing their relationship, focused on business initiatives, building on the foundation established over the past 7 years. The expected impact of the sale on financial results for both consolidated financial results (IFRS) and non-consolidated financial results (Japanese GAAP) are as follows. (1) Impact on consolidated financial results (IFRS) The gain / loss based on the valuation of the shares is included in Other comprehensive income, and therefore there is expected to be no impact on each level of profit through profit before tax for the consolidated financial results for the fiscal year ended March 31, 2023. However, tax expenses are expected to be incurred related to handling the gain on sale described in (2) below. (2) Impact on non-consolidated financial results (Japanese GAAP) DeNA expects to record approximately 38.6 billion yen in gain on sale of investment securities in the non-consolidated financial results for the fiscal year ended March 31, 2023. DeNA also expects to incur tax expenses related to this gain. If there are any matters to be disclosed in this regard in the future then DeNA will disclose them in a timely Nintendo Co., Ltd. DATA HORIZON CO., LTD. 108,502 million yen 2,721 million yen 1,759,400 shares 1,370,100 shares Revenue Operating Profit before Profit for the profit tax period Basic earnings per share Millions of yen Millions of yen Millions of yen Millions of yen Yen Profit for the period attributable to owners of the parent Millions of yen 130,868 11,462 29,419 30,651 30,532 256.45 Net sales Operating income Ordinary income Net income Millions of yen Millions of yen Millions of yen Millions of yen Basic earnings per share Yen 93,005 5,083 10,161 13,253 111.32 For inquiries please contact: IR Department (ir@dena.com) DeNA Co., Ltd. (https://dena.com) manner. (Reference) (Reference) Consolidated financial results (Fiscal year ended March 31, 2022) Non-consolidated financial results (Fiscal year ended March 31, 2022)