Message to Shareholders and Investors

We would like to express our sincere gratitude to our shareholders for their continued support.
We would like to report on our business results for the fiscal year ending March 31, 2020.

During this fiscal year, in our game business, we have focused on improving profitability through streamlining the operation of operating titles. Also, as a development and operation partner, we have made a considerable contribution to the enlargement of "enza," the new browser gaming platform by BANDAI NAMCO Entertainment Inc. In our advertising and media business, along with online advertising service, we have placed our focus on developing and operating new services, with the aim of creating future main-stay business for our company.

< Entertainment Services >

IP-based games distributed by other companies continued to make stable revenue and profit contributions. In particular, the two core titles released in May 2014 and November 2016 successfully gained avid support from users, resulting in stable performance seemingly unaffected by time. Also, new IP-based titles were released in August and November 2019, and a title re-released in November 2019 had a successful launch and made a bigger contribution than initially expected.

Original titles also had solid performance. "Chokotto Farm(ちょこっとファーム)," a 10-year old original title, successfully maintained the previous year's performance by offering in-game events focusing on meeting user expectation.

However, we had fewer titles in development this fiscal year, and as a result, development revenue has seen a drop from last year. On the other hand, profit entered the black, reflecting fewer unprofitable titles and streamlined operating costs. For the fiscal year ahead, we endeavor to increase the revenue and profit size of our game business through improving and stabilizing profitability by offering attractive in-game events.

< Advertising Media Services >

For advertisement and media services, along with online advertisement service, we laid our focus on developing new services which would become our future mainstay business under our new business development initiative "DRIP (Drecom Invention Project)." "AROW," a platform for developing location-based games using 3D real mapping techniques and POI (Point of Interest) data, released in August 2018, is one of our efforts in the initiative. "AROW" is now at the pre-commercialization stage and is focusing on adding finishing touches and publicity to increase recognition in the market.

This year, we have celebrated the 18th anniversary of our founding and 14th anniversary of our IPO. Our company was started by several ambitious college students who continuously faced challenges in a rapidly changing environment, seeking to develop and to provide services with competitive edges. From blog to mobile games, Drecom has shifted business focus several times, but all our services share one common value, a value that has been at our core since the foundation: "with entertainment." We will continue to strive to provide unique and Drecom-like services which to exceed people's expectations to archive our ultimate goal of delivering "with entertainment" to the world.

We look forward to your continued understanding and support.