Koei Tecmo FY2025 Q3 Earnings Release

Financial Results for the Q3
of the Fiscal Year Ending March 2026
KOEI TECMO HOLDINGS CO., LTD.

Agenda
1. Financial Highlights and Earnings Forecasts
2
1. Financial Highlights and Earnings Forecasts
2. Business Highlights
3. Frequently Asked Questions
-Q4 Forecasts and Outlook for the Next Fiscal Year
-Entertainment Business Strategy
4. Q&A

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Financial Highlights: Consolidated Results (vs. previous year)
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◆ Year -on -year increase or decrease
[Sales]Entertainment business ( Online/Mobile ) decreased.
[Cost]Overall, it was the same as the previous year.
Employment costs increased, variable costs decreased.
[Non -operating income /expenses]
Steady although not reached the previous fiscal year.(Million Yen)
Amount Profit Ratio Amount Profit Ratio Amount Percent
Change
Sales 52,570 – 51,729 – (841) -1.6%
Operating Profit 15,075 28.7% 14,571 28.2% (504) -3.3%
Ordinary Profit 33,144 63.0% 31,099 60.1% (2,045) -6.2%
Net Profit 25,161 47.9% 23,780 46.0% (1,381) -5.5%
FY24 Q3 FY25 Q3 Vs Previous Year

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Expenses and number of employees (vs. previous year)
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*1 For the cost forecast at the beginning of the fiscal year , please refer to the supplementary document (p.21).
*2 Number of employees: Consolidated basis, excluding temporary employees
*3 The burden of development costs by partners is recorded in the form of a reduction in the cost of sales.
The amount recorded, the title recorded, the terms of the contract with the partner are not disclosed.
-Development cost burden by partners (cost of sales) *3 :Increased YoY,Same level as Q2(million yen/person)
FY24
Q3
FY25
Q3 Change vs Initial forecast [1]
Employment
Costs COGs 14,500 16,040 1,540 ー
SGA 3,500 3,780 280 ー
18,000 19,820 1,820 ー
Outsourcing Costs COGs 4,660 4,270 (390) Decreased
Advertizing Costs SGA 2,060 1,940 (120) Decreased
Headcount [2] 2,713 2,849 136 as Expected

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Cost (Trend)
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Employment costs : Salary, bonuses, etc. . are recorded. Actively implement base increases and salary increases and Varies depending on the number of hires and the p rev ious year’s performance. Outsourcing costs: Includes development costs for titles to be released in the future, server costs, debugging costs, etc. . Advertising and promotional expenses: For the console and PC sectors, these occur around the time of release. In the online and mobile sectors, they are recorded o n a n ongoing basis, with a focus during launch and anniversary periods.
・There is no change in cost trends as a whole
・In FY25, outsourcing costs and advertising costs will remain lower than initially forecasted.
Unit:Million yen Main Cost Trends
2 new Mobile games released Outsourcing costs, Advertising costs
Major titles Advertising costs

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Financial Highlights by Segment
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◆ Year -on -year increase or decrease
[Entertainment] Sales decline in the Online/Mobile sector.
[Amusement] AM facility business Existing stores are doing well.
[Real Estate] Concert hall “KT Zepp Yokohama” contributed(Million Yen)
FY24 Q3 FY25 Q3 Change
Entertainment Sales 48,794 47,543 (1,251)
Operating Profit 14,867 14,148 (719)
Amusement Sales 3,103 3,436 333
Operating Profit 377 559 182
Real Estate Sales 938 972 34
Operating Profit 228 246 18
Others Sales 227 265 38
Operating Profit (397) (382) 15
Corporate & Elimination Sales (494) (489) 5
Operating Profit – – –
Total Sales 52,570 51,729 (841)
Operating Profit 15,075 14,571 (504)

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Earnings Forecast
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◆ Assumptions for Forecasts
・As of the 1st half , Operating Profit exceeded the initial plan. The 3Q also showed steady progress.
・New titles are concentrated in the 4Q.
Earnings forecasts include new titles scheduled to be released within the fiscal year.
・There is no risk assumption such as recording large temporary expenses.
・The exchange rate assumption is 140 yen per dollar.
→ The impact on operating profit from a 1 -yen exchange rate fluctuation exceeds 100 million yen.
The full -year earnings forecast is unchanged.(Million Yen)
Amount Ratio Amount Ratio Amount Ratio
Sales 83,150 – 92,000 – 8,850 10.6%
Operating Profit 32,119 38.6% 31,000 33.7% (1,119) -3.5%
Ordinary Profit 49,988 60.1% 37,000 40.2% (12,988) -26.0%
Net Profit 37,628 45.3% 27,000 29.3% (10,628) -28.2%
Dividend per Share (Yen) 60 ー 43 ー (17) -28.3%
Payout Ratio 50.4% ー 51.8% ー +1.4pt ー
FY24 Results FY25 Forecast VS Previous Year

Agenda
2. Business Highlights
8
1. Financial Highlights and Earnings Forecasts
2. Business Highlights
3. Frequently Asked Questions
-Q4 Forecasts and Outlook for the Next Fiscal Year
-Entertainment Business Strategy
4. Q&A

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Business Highlights: Entertainment Business Revenue Breakdown
Major new Console&PC titles were released, and new Mobile titles were also launched in Q3
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◆ Year -on -year increase or decrease
・[Console/PC] Increased sales due to the release of major new titles.
・[Online/Mobile]Decreased in existing titles, resulting in a decrease in cumulative revenue in the 3Q.
D ue to the contribution of titles that launched in Q3, revenue for 3Q alone increased.
*1 Includes in -house titles, collaboration/collaboration titles. Publishing titles from other companies that are recorded as roy alties are also divided and aggregated by product type. *2 In addition to physical package sales, it includes royalties for distribution licenses, development consideration sales, d own payments, etc. . The breakdown and increase or decrease of the amount are not disclosed. *3 Includes royalty sales for IP licensed titles in operation. The amount and ratio of IP licensing sales are not disclosed.(Million Yen)
FY24 Q3 FY25 Q3 Change
Console/PC [1] Package etc [2] 8,704 10,372 1,668
DL 9,800 10,726 926
DLC 1,420 1,123 (297)
19,924 22,221 2,297
Online/Mobile Online 300 230 (70)
Mobile [3] 28,070 24,290 (3,780)
28,370 24,520 (3,850)
Events & Goods 500 800 300
Sales for Entertainment Segment 48,794 47,543 (1,251)

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Business Highlights: Entertainment Business Console & PC Sales Volume
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7 new titles
(“Dynasty Warriors : ORIGINS “)
3 new titles
In addition to major new titles, new middle -class titles are also released
2 new titles
Console & PC Quarterly Sales (1K units)
*For the number of units sold by region, please refer to the “Financial Results Data Collection” (https://www.koeitecmo.co.jp/ir/library/reports/ )
4 new titles

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B usiness Highlights: Entertainment Business Online and Mobile Sales
2 new titles are now launched, and an anniversary event was held for 1 title.
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Online & Mobile Quarterly Sales (Million Yen)
2 titles (in -house)
launched ・Semi -Anniversary
3 titles
・Seasonality Anniversary
3 titles
1 title (in -house)
launched ・2 titles (in -house)
launched
・Anniversary 1 title

Agenda
3. Frequently Asked Questions
12
1. Financial Highlights and Earnings Forecasts
2. Business Highlights
3. Frequently Asked Questions
-Q4 Forecasts and Outlook for the Next Fiscal Year
-Entertainment Business Strategy
4. Q&A

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Q1. Q4 Forecasts and Outlook for the Next Fiscal Year (trends in the Q4 )
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In Q4 , multiple titles including Nioh 3 are scheduled to be released
Unit: Million yen
Sales: 8 titles are scheduled to be released on Consoles and PCs (2 major titles, 6 others).
In the Mobile sector, sales from new titles are reflected over a 3 -month period, and events or seasonal factors related to
existing titles are also considered.
Cost: Planned Advertising Costs for new product releases. Fixed costs have no major variables
The graph does not suggest a figure that differs from the earnings forecast
Console PC 8 titles will be released
Console PC4 titles released
No new work No major new title
Quarterly Consolidated Results

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Q1. Q4 Forecasts and Outlook for the Next Fiscal Year (trend in the number of released titles )
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Number of new titles (unit: 1 title)
In the 4th MTMP,
Enhancing quantity and quality of titles based on The Pipeline from the previous MTMP
Main titles of each year
・FY22
Console PC Fire Emblem Warriors: Three Hopes,
WILD HEARTS
(Major ) Wo Long: Fallen Dynasty
Mobile Nobunaga’s Ambition: Hadou
・FY23
Console PC
(Major ) Fate/Samurai Remnant,Rise of the Ronin
Mobile Nobunaga’s Ambition: Shutsujin, Atelier Resleriana
・FY24
Console PC Dynasty Warriors: ORIGINS
(Major )
・FY25
Console PC Nioh 3, NINJA GAIDEN 4
(Major )
Hyrule Warriors: Age of Imprisonment,
Pokémon Pokopia
Mobile Kingdom Hadou
Haruka: Beyond the Stream of Time Ryugu no Miko

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Q1.Outlook for the 4Q and for the next fiscal year (Title release results by brand (excerpts))
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rand FY2022 FY2023 FY2024 FY2025 (Announced)
Kou Shibusawa Nobunaga’s Ambition:
Awakening
Nobnaga’s Ambition: Hadou
etc.
Nobunaga’s Ambition with Power
Up Kit
Winning Post 10 2024
Romance of the Three Kingdoms
8 REMAKE
Winning Post 10 2025
Winning Post 10 2026
Kingdom Hadou
etc.
OMEGA FORCE Fire Emblem Warriors: Three
Hopes
WILD HEARTS
etc.
Fate/Samurai Remnant Dynasty Warriors: ORIGINS
Warriors Abyss
Pokémon Pokopia
etc.
Team NINJA Wo Long: Fallen Dynasty
etc.
Rise of the Ronin
Wo Long: Fallen Dynasty
Complete Edition
NINJA GAIDEN 2 Black
etc.
Nioh 3
NINJA GAIDEN 4
etc.
Gust Atelier Ryza 3 : The Alchemist of
the End & the Secret Key
etc.
Atelier Resleriana
Marie’s Atelier Remake : The
Alchemist of Salburg
etc.
Atelier Yumia: The Alchemist of
Memories & the Envisioned Land
etc.
Atelier Resleriana: The Red
Alchemist & the White Guardian
etc.
Ruby Party Haruka: Beyond the Stream of
Time Ryugu no Miko
midas Nobunaga’s Ambition : Shutsujin
AAA Games Studio Hyrule Warriors: Age of
Imprisonment
Multiple brands consistently release new consoles/PCs, major and middle class, online/mobile titles
Orange : Console PC Light Blue : Online Mobile

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Q2. Entertainment business strategy (entertainment business growth strategy)
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[Console and PC sector ]
◆ Positioning
・Drive growth.
◆ How to grow
・Increase the number of titles.
improve the quality and increase the probability of hits per title.
・Balance challenges and stable earnings.
Adequately allocate both major titles and low -risk titles.
*The chart is for illustrative purposes only and does not indicate the planned values.
[Online and Mobile sector ]
◆ Positioning
・Generate stable revenue.
◆ How to grow
・Growth by adding new titles and accumulating sales.
・Rather than expanding the scale of individual titles, aim to stabilize the entire
field by creating new titles that contribute over multiple years.
Leveraging Consoles and PCs as growth drivers while expanding online and mobile product portfolio
Existing title
New title1
New title2
New title3
Sales
time
Chance & Risk

Agenda
4. Q&A
17
1. Financial Highlights and Earnings Forecasts
2. Business Highlights
3. Frequently Asked Questions
-Q4 Forecasts and Outlook for the Next Fiscal Year
-Entertainment Business Strategy
4. Q&A

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Supplementary Information

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Long -term vision
Top 10 in the world
Long -term vision
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From the 4th to the 6th MTMP
Aiming to achieve the long -term vision of “entering the top 10 in the world”
4th Medium -term
Management Plan
FY2025 -27
Creating a foundation
for growth
5th Medium -term
Management Plan
FY2028 -30
Leap to the Global
6thMedium -term
Management Plan
FY2031 -33
Focusing on creation
and
development
Further growth stage

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4 th MTMP
“Creating a foundation for growth”
Overall Overview of the 4th MTMP
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As the first step toward the long -term vision,
the 4rth Medium -Term Plan will promote “Creating a Foundation for Growth.”
◆ Qualitative goals
(1) Pipeline number growth
(2) Pipeline quality growth
(3) Sales power growth
(4) Cost efficiency growth
◆ Three pillars
1. Strengthening the management foundation (human capital, governance system)
2. Business strategy (Entertainment business is a growth driver.)
Strengthen the “power to Create”, “Sell”, “Utilize”, and “Support” IP
3. Cash allocation (growth investment centered on human capital and return)
◆ Quantitative Targets
・Cumulative operating income of 100 billion yen
or more over three years
・Re -challenge to achieve operating profit of 40 billion
yen in a single year
・Operating profit margin of 30% or more
(cumulative for a single year and 3 years)

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Initial earnings forecast and dividend forecast (cost forecast) 【Reprinted from the past materials 】
・Development cost burden by partners FY2025 will be at the same level as FY2024
*The chart is for illustrative purposes only and does not indicate the planned values.
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Unit: Million yen Cost trends in Subject FY25 Estimate YoY MTP4 3years Trend
Employment Costs Increase An increase of about 10% per year
Outsourcing Costs Increase Gradual increase on an annual basis
Advertising Costs Increase Increase in line with sales growth.
Mobile is concentrated around the launch period.
Total Headcount
*excludes temporary
Maintain
the Pace of Increase
Continue proactive recruitment,
focusing on new graduates in the domestic market.

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For Individual Investors

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Product Information Portal Site https://www.gamecity.ne.jp/
Nioh 3
Official website
https://teamninja -studio.com/nioh3/jp/
α Trial Feedback Report
https://teamninja -studio.com/nioh3/jp/feedback.html
TGA 2025 Trailer
https://youtu.be/q -1M7pQVu6M
Game Media Trial Play Version Play Report Article List
https://teamninja -studio.com/nioh3/jp/news/media_report.html
Romance of the Three Kingdoms 8 REMAKE
with Power -Up Kit
Official website
https://www.gamecity.ne.jp/sangokushi8 -re/wpk/
Trailer

Dynasty Warriors: ORIGINS:
DLC Visions Of Four Heroes
Official website
https://www.gamecity.ne.jp/smusou_origins/jp/dlc/
Trailer
https://youtu.be/tr -WKUWxhZo
DYNASTY WARRIORS 3 :
Complete Edition Remastered
Official website
https://www.gamecity.ne.jp/smusou2 -re/jp/
Trailer

FATAL FRAME II: Crimson Butterfly REMAKE
Official website
https://www.gamecity.ne.jp/zero/crimson -re/jp/
Trailer

Haruka: Beyond the Stream of Time
Ryugu no Miko
Official website
https://www.gamecity.ne.jp/haruka -ryugu/
Trailer
https://youtu.be/ -5AXdxqhZnc
Links / Product Information (Some Excerpts)
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© KTHD © KTG
Corporate Site IR Library
(Financial statements, securities reports,
Financial results explanation materials, etc. .)
https://www.koeitecmo.co.jp/ir/library/
Integrated Report
(2025 edition)
Full text
https://www.koeitecmo.co.jp/ir/docs/ird1_20251022.pdf
-Basic Philosophy, FY2024 Summary (At a Glance), Development Structure, IP Introduction, History, Long -Term Vision
https://www.koeitecmo.co.jp/ir/docs/ird1_20251022_01.pdf
-4 competitive advantages
https://www.koeitecmo.co.jp/ir/docs/ird1_20251022_06.pdf
-Interview with the new chairman
https://www.koeitecmo.co.jp/ir/docs/ird1_20251022_02.pdf
-Interview with the new president
https://www.koeitecmo.co.jp/ir/docs/ird1_20251022_03.pdf
Financial Results Explanation Materials
◆Fiscal year ending March 2025 (including the 4th Medium -Term Management Plan)
Presentation materials (with notes)
https://www.koeitecmo.co.jp/ir/docs/ir3_20250501.pdf
Presentation Video

◆Fiscal Year Ending March 2026 2nd Quarter
Presentation materials (with notes)
https://www.koeitecmo.co.jp/ir/docs/ir3_20251029.pdf
Presentation Video
https://youtu.be/RdD0lBtf6 -k
References
Frequently asked questions
https://www.koeitecmo.co.jp/ir/faq/
Glossary
https://www.koeitecmo.co.jp/ir/glossary/
Links/Disclosure Materials
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