Kadokawa Corp FY2024 Earnings Release

Earnings Results
Fiscal Year Ended March 31, 2025 ｜ May 8, 2025

Contents
1. Consolidated Earnings Results
for the Fiscal Year E nded March 3 1, 20 25 P3
2. Consolidated Earnings Forecasts
for the Fiscal Year E nding March 3 1, 20 26 P18
3. Progress on t he Mid -term Management Plan P30
4. Appendix P47

Consolidated Earnings Results
for the Fiscal Year Ended March 31, 2025

4
Summary of Consolidated Earnings Results for the Fiscal Year Ended March 31, 2025
• Net sales: +7.7%, operating profit: -9.8 %, net profit: -3 5.1 %
Based on estimates excluding the impact from decreased sales and profit due to the cyberattack
(sales -8.3 billion yen, operating profit -4.7 billion yen) , +11% in sales and +16% in operating profit
➢ In Publication /IP Creation, the number of new IPs increased partly due to investments in human resources, continuing to enhance the
source of business value for the entire group.
Net sales grew by 6.6 % in the segment overall, with the decline in sales from domestic paper -based books due to the effects from the
cyberattack (-3.65 billion yen) and market contraction was offset by growth in e -books, international paper -based books and rights
licensing sales
There was a decline in profits due to the cyberattack on domestic paper -based books (-1.9 billion yen)
➢ In Animation /Film, we achieved record -high net sales and operating profit for two consecutive years
In Animation, where we have developed a strong lineup of titles, through contributions made by domestic and international str eam ing, as
well as rights licensing sales for video games, merchandise and gaming machines. The animation business alone has enabled us to
achieve record -high performance, driving sales and operating profit in the segment overall
➢ In Gaming, both sales and operating profit achieved high growth, thanks to original ELDEN RING and its DLC contributing to domestic and
international revenue.
➢ In Web Services, sales and operating profit declined due to a cyberattack (net sales -3.95 billion yen, operating profit -2.1 billion yen)
➢ In Education /EdTech, 12.9% sales growth and a significant 37.9% increase in operating profit was achieved, benefitting from solid
increases in student numbers at Vantan and the N/S high schools, particularly at newly opened schools
➢ In the Others segment, the deficit was narrowed in the segment overall due to the effect of lower amortization expenses resul tin g from
the impairment in FY2023 and ongoing cost control in commercial facility business .
➢ The extent of decrease in net profit is larger than that in operating profit due to an extraordinary loss of 2.4 billion yen fro m cyberattacks

5
Response to Incidents and Compliance Enhancement
■ After receiving a warning from the Japan Fair Trade Commission in November 2024, KADOKAWA has completed all required action a s d etailed
below
■ KADOKAWA engaged in discussions over rates with all subcontractors the commission determined were subjected to violations of the
Subcontracting Act, and issued retroactive payments to make up the differences
■ A Board of Directors resolution acknowledging that there was a violation of the Subcontracting Act in this instance was made, an d the
Company affirmed that subcontracting rates will not be unfairly determined in the future.
■ Multiple sessions of internal training were provided to all employees who are involved in order placement operations, with outsi de lawyers
serving as instructors
■ All subcontractors doing business with KADOKAWA were notified of the warning received by the Japan Fair Trade Commission and the steps
KADOKAWA was taking in response
Responding to warning over Subcontracting Act
■ In handling this matter, all directors shared the background and response policy on a case -by -case basis and made management dec isions. In
addition to obtaining a written opinion from an outside attorney on legal issues, we also explained the situation to the audi tin g firm and obtained an
appropriate opinion, and we recognize that there are no governance problems with the management team.
■ In response to a large -scale cyberattack, we implemented measures to prevent repeat occurrences based on advance and checks by a major
outside security firm
■ Our security response capabilities were strengthened at the system level with the rebuilding of various servers, improved mon ito ring, and
other measures
■ We have also conducted employee training with a focus on information security, including spam email drills and compliance tes tin g
Verification of response to cyber -attacks and enhanced security structure
■ We have strengthened approval checks and improved decision -making processes by reviewing items in the authority approval standar ds
■ We have continued to develop compliance -related learning content and conduct regular testing in an ongoing effort to raise aware ness of legal
compliance
Other efforts to strengthen the legal compliance framework

6
4Q Operating Profits
Summary of Consolidated Earnings Results for the 4 th Quarter
of the Fiscal Year Ended March 31, 2025
• 4th Quarter (Jan. -Mar.)
Net sales: + 0. 3 % , Operating profit: -8 4 .1%
➢ Overall sales remained flat, as strong performance in Gaming and
Education /EdTech offset an accounting rebound effect in e -books
(approx. -1. 6 billion yen)
➢ Operating profit declined significantly due to the following factors.
• Positive Factor in FY2023
• Impact of change in timing of sales recognition in e -books: approx. 1.2
billion yen
→ This impact will continue into the 3rd quarter of FY2025
(Impact amount gradually declines quarter by quarter)
• Negative Factors in FY2024
• Increased advertising expenses on a consolidated basis:
approx. 1 billion yen
• Increased impairment loss for multiple game titles:
approx. 900 million yen
• Expenses for stock options in Gaming: approx. 600 million yen
→ From FY2025 onward, the recorded amount is expected to decrease
each year, contributing to profit growth
• Impact of membership cancellations due to web service credit card
payment suspension and devaluation related to certain services:
approx. 200 million yen
• Increase in disposal losses of part of the e -book system:
approx. 100 million yen
FY2023
5,119
million yen
FY2024
812
million yen
FY2024 4Q Main Negative Factors
•Increased advertising expenses on a consolidated
basis:
approx. 1 billion yen
•Increased impairment loss for Gaming:
approx. 900 million yen
•Expenses for stock options in Gaming:
approx. 600 million yen
•Impact of membership cancellations and devaluation
related to web service credit card payments:
approx. 200 million yen
•Increased disposal losses from e -book :
approx. 100 million yen
FY2023 4Q
Positive Factor
• Impact of change in timing of
sales recognition in e -books:
approx. 1.2 billion yen

7
Consolidated Earnings Results for the the Fiscal Year Ended March 31, 2025(Unit: Million JPY)
Results for the
fiscal year ended
March 31, 2024
Results for the
fiscal year ended
March 31, 2025
Year on year
(changed amount)
Jan.-Mar. 2024
Results
Jan.-Mar. 2025
Results
Year on year
(changed amount)
+7.7% +0.3%
(+19,806) (+242)
-9.8% -84.1%
(-1,802) (-4,306)
└ Operating margin 7.1% 6.0% -1.2pt 7.2% 1.1% -6.1pt
-12.3% -92.4%
(-2,493) (-6,311)
-35.1% -99.5%
(-3,991) (-5,044)
-1.8% -53.5%
(-467) (-3,879)
5,070 25
EBITDA
(Operating prifit + depreciation
+ amortization of goodwill)
25,374 24,907 7,252 3,372
Ordinary profit 20,236 17,742 6,828 516
Profit attributable to
owners of parent 11,384 7,392
Net sales 258,109 277,915 71,084 71,327
Operating profit 18,454 16,651 5,119 812

8
Net Sales and Operating Prof it by Business Segment(Unit: Million JPY)
Results for the
fiscal year
ended
March 31, 2024
Results for the
fiscal year
ended
March 31, 2025
Jan.-Mar. 2024
Results
Jan.-Mar. 2025
Results
Net sales 141,967 151,367 +6.6% (+9,400) 39,905 39,644 -0.7% (-261)
Operating profit 10,360 8,372 -19.2% (-1,987) 4,700 2,010 -57.2% (-2,690)
Net sales 46,060 51,092 +10.9% (+5,032) 13,235 13,171 -0.5% (-64)
Operating profit 4,574 4,729 +3.4% (+155) 958 24 -97.4% (-933)
Net sales 25,351 33,597 +32.5% (+8,246) 6,272 7,145 +13.9% (+872)
Operating profit 7,950 9,538 +20.0% (+1,588) 1,956 879 -55.1% (-1,076)
Net sales 21,399 18,038 -15.7% (-3,361) 5,317 4,668 -12.2% (-648)
Operating profit 362 -998 – (-1,360) -705 -285 – (+419)
Net sales 13,390 15,119 +12.9% (+1,728) 3,594 3,799 +5.7% (+204)
Operating profit 1,727 2,382 +37.9% (+655) 168 118 -29.9% (-50)
Net sales 20,298 17,881 -11.9% (-2,417) 5,702 5,310 -6.9% (-391)
Operating profit -4,399 -4,204 – (+195) -1,366 -992 – (+374)
Net sales -10,358 -9,181 – (+1,176) -2,943 -2,412 – (+531)
Operating profit -2,120 -3,169 – (-1,048) -592 -941 – (-348)
Corporate/
Eliminations
Education/EdTech
Others
Gaming
Web services
Animation/Film
Year on year
(changed amount)
Year on year
(changed amount)
Publication/
IP Creation

9
(Unit: Million JPY) Impact on the Full
Year Impact on 1Q
（ Results ）
Impact on 2Q
（ Results ）
Impact on 3Q
（ Results ）
Impact on 4Q
(Results)
Impact on Net Sales -8,300 2,600 -4,900 -700 -100
Publication /IP
Creation
(Domestic paper -based books)
-3,650 -1,350 -1,800 -500 –
Web Services -3,950 -1,250 -2,600 -50 -50
Others -700 – -500 -150 -50
Impact on Operating Profit -4,700 -1,850 -2,650 -200 –
Publication /IP
Creation
(Domestic paper -based books)
-1,900 -800 -850 -250 –
Web Services -2,100 -1,050 -1,300 +200 +50
Others -700 – -500 150 50
Extraordinary Losses※ Losses related to compensation to creators on the niconico service and work to investigate the incident and restore systems
2,400 2,000 350 – 50
System Failure Caused by Large -scale Cyberattack: Impact on Business Performance
* As a result of careful review, some past figures have been corrected.
* The positive operating profit figures are due to a decline in some costs form the impact of the system failure

10
Business Overview – Publication /IP Creation Segment
• Sales of domestic paper -based books declined. In addition to the ongoing contraction of the entire
market, this was due to factors including the impact from the cyberattack . The number of new IPs
steadily increased
In 4Q , sales declined due to the effects of market contraction, a worsening return rate, and the
absence of contributions from hit titles unlike the same period in FY2023
• Sales of e -books remained strong, particularly through stores of other companies
4Q saw a decrease in sales due to the absence of positive factors from FY2023 , such as the
increase in sales and profit due to change in timing of sales recognition and contributions from hit
titles, as well as a cost increase in incentives to other companies’ stores in FY2024 (4Q : -15.8%)
• International paper -based books saw increased sales in both the full year, with 4Q sales rising
57.4% . Overall growth driven by steady performance in Asia. Increased sales in the Americas
both in the full year and 4Q
• Rights licensing sales enjoyed steady growth both in the full year and in 4Q , with sales for gaming
machines among the contributing factors
• The effect of consolidation of ArcLight Inc. (6.1 billion yen) drove the increase in overall segment
sales. Profit impact is limited.
Net sales: Full year +6.6% / +9,400M (4Q -0.7 ％ / -261M)
YoY Analysis
• Although international paper -based books and rights licensing saw an increase in profit, there
was a decline due to the effects of the cyberattack on domestic paper -based books and active
investment in human resources. Overall operating profit decreased as the abovementioned
decline could not offset by e -books, which had a significant decrease due to change in timing of
sales recognition in 4Q .
4Q saw a decline in profit mainly due to the negative factor in e -books mentioned above
Operating profit: Full year -19.2% / -1,987M (4Q -57.2% / -2,690M)
(Unit: Million yen)
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
Domestic paper -based
books/information media
YoY -9.8%
Composition ratio: 28 ％
E-books
YoY +5.6%
Composition
ratio: 41 ％
International
paper -based books
YoY +28.3%
Composition ratio:
12 ％
Rights licensing
YoY +7.9%
Composition
ratio: 10%
Other subsidiaries, etc.
YoY + 62.9 %
Composition ratio: 9％ 141,967
151,367
39,905 39,644
10,360
8,372
4,700
2,010
0
5,000
10,000
15,000
20,000
0
40,000
80,000
120,000
160,000
FY2023 FY2024 FY2023 FY2024

11
Overview of Business Performance – Publication /IP Creation Segment
(Full -year Factors for Increase /Decrease in Operating Profit)
◆ Pu b l i c at i on / IP C re at i on S e g m e n t op e rat i n g p rof i t : YoY -1 9 . 2 % / -1 , 9 8 7 M
FY2023 Full -year
Operating profit
KADOKAWA non – consolidated Domestic paper -based books/information media Impact of sales decrease International paper -based books
FY2024 Full -year
Operating profit
Other expenses
•In addition to the effects of increased profit due to changes to the timing of revenue recognition in the fourth quarter of FY2023 , profit excluding increased human resources investment remained modest due to increased allocation ratios of common expenses
Main domestic Group companies(Media business)
•Growth driven by steady performance in AsiaSales and profit increased in the US
•Impact from the ongoing contraction of the magazine business
•Impact from decline in sales due to the cyberattack
•Decline in profit due to the absence of major hit titles that were released in FY2023
•Continuation of solid growth
10,360
million yen
8,372
million yen
Rights licensing
•For medium -to long -term growth, investments in human resources, mainly editors, increased.
•Investment in the comic book genre also increased year on year.
•Decreased investment in the digital manufacturing plant and the new logistics facilities
E-books
Investment expenses
KADOKAWA non – consolidated Domestic paper -based books/information media Increased costs due to material costs and logistics expenses, etc.
•Impact from increased costs including sharply rising logistics expenses and material costs due to market conditions

12
Overview of Business Performance – Publication /IP Creation Segment
(4Q Factors for Increase /Decrease in Operating Profit)
◆ Pu b l i c at i on / IP C re at i on S e g m e n t op e rat i n g p rof i t : YoY -5 7 . 2 % / -2 , 6 9 0 M
FY23 4Q
Operating profit
FY24 4Q
Operating profit
4,700
million yen
2,010
million yen
KADOKAWA
non -consolidated
Domestic paper –
based books/
information media
Impact of sales
decrease
International
paper -based
books
Other expenses
•Increase in advertising expenses •Increase in profit from FY2023 due to decreased costs
Main domestic Group
companies
(Media business)
Rights
licensing
E-books
Investment
expenses
KADOKAWA
non -consolidated
Domestic paper –
based books/
information media
Increased costs
due to material
costs and logistics
expenses, etc.
•Materials and logistics expenses decreased
•In addition to the effects of increased profit due to changes to the timing of revenue recognition in the fourth quarter of FY2023 , profit excluding increased human resources investment declined significantly, due to increased allocation ratios of common expenses , increases in incentive payments to other companies’ stores
•Growth driven by steady performance in AsiaSales and profit increased in the US
•Decline in profit due to the absence of major hit titles that were released in FY2023
•Continuation of solid growth
•In the fourth quarter, personnel expenses dropped significantly from the same period in FY2023, which a large provision for bonuses was recorded

13
Business Overview – Animation /Film Segment
• In Animation, strong year -on -year growth continued, driven by rights licensing sales for
popular series, both for domestic and international streaming , games and merchandise , led
by the second season of 【Oshi no Ko 】 and the third season of Re:Zero -Starting Life in
Another World
In 4Q , despite the effects of significant rights licensing sales for a popular series of gaming
machines in FY2023 , rights licensing sales for streaming increased, driven mainly by the
second season of ISHURA and Medalist , resulting in continued growth (+8.8%) .
• Film remained flat for the full year. Rights licensing sales for streaming increased for KUBI ,
Let’s Go Karaoke! , and Matched despite a decline in theater sales
4Q saw a decline in sales from FY2023 , when the above theatrical sales performed well
• Animation saw a full -year increase in profit due to the above factors
4Q saw a decrease in operating profits due to active promotional investments and the
absence of contributions from highly profitable rights licensing sales
• Film saw a full -year decrease in operating profit due to rising costs at certain subsidiaries,
and 4Q also saw a decrease in profit due to the above sales -related factors
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
Net sales: Full year +10.9% / +5,032M (4Q -0.5% / -64M)
Operating profit: Full year +3.4% / +155M (4Q -97.4% / -933M)
Animation
YoY +16.2 %
Composition ratio: 73 ％
Live action films
YoY -0.7%
Composition ratio:27 ％
YoY Analysis
46,060
51,092
13,235 13,171
4,574
4,729
958
24
0
1,000
2,000
3,000
4,000
5,000
6,000
0
10,000
20,000
30,000
40,000
50,000
60,000
FY2023 FY2024 FY2023 FY2024

14
Business Overview – Gaming Segment
• A full -year increase in profit due to the above factors
• Although sales increased, 4Q saw a decrease in operating profit due to higher
expenses, including increased impairment losses on multiple titles (totaling approx.
900 million yen)
• Sales increased significantly in the segment overall in the full year, with
significant contributions from the positive performance of the ELDEN RING
original game and DLC
• Royalty sales were boosted, particularly overseas
• Cumulative worldwide sales of original ELDEN RING surpassed 30 million units as of the
end of March
• 4Q saw an increase in sales, driven by contributions from the ELDEN RING
original game and DLC , as well as royalties from the strong performance of
Dragon Ball Sparking! ZERO , developed under contract by Spike Chunsoft
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
YoY Analysis
New titles for
consoles and PCs
YoY -58.8%
Composition ratio: 11 ％
Repeat sales for
consoles and PCs
YoY +29.4 %
Composition ratio: 14 ％
Royalties for
consoles and PCs
YoY + 242.7 %
Composition ratio: 44 ％
Others
YoY +22.1%
Composition ratio:
31%
Net sales: Full year +32.5% / +8,246M (4Q +13.9 ％ / +872M)
Operating profit: Full year +20.0 ％ / +1,588M (4Q -55.1% / -1,076M)
23,351
33,597
6,272 7,145
7,950
9,538
1,956
879
0
3,000
6,000
9,000
12,000
15,000
0
7,000
14,000
21,000
28,000
35,000
FY2023 FY2024 FY2023 FY2024

15
Business Overview – Web Services Segment
• Due to falling sales in niconico -related businesses, which lost sales from June to
August in connection with service disruptions from a cyberattack, sales declined
for the full year (-3.95 billion yen)
• 4Q saw a decrease in sales due to a fall in paid memberships in niconico -related
businesses and a decrease in sales in the live business from events consigned
by other companies
Premium memberships have continued to fall, with a suspension of credit card
payments caused by stricter policies implemented in light of the social
environment. A negative impact on sales (approx. -200 million yen) was recorded,
including for past periods, due to membership cancellations following the new
policies. Review of posted content compliant with the above policies was
completed during FY2024
Operating profit: -21.3 % / -2,795M (4Q +44.0% / +1,436M)
• Operating profit decreased mainly due to the effects of the cyberattack (-2. 1 billion
yen)
• Although sales declined, 4Q saw an increase in operating profit compared to
temporary expenses in niconico -related businesses (approx. 600 million yen) in
FY2023 .Extraordinary factors arose, including the effects of membership
cancellations due to the above credit card payment suspension and devaluation
related to certain services (totaling approx. -200 million yen)
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
YoY Analysis
Net sales: Full year -15.7% / -3,361M (4Q -12.2% / -648M)
Operating profit: Full year -1,360M (4Q – / +419M)
Niconico -related
YoY -14.9%
Composition ratio: 75%
Live
YoY -19.5%
Composition ratio: 14%
Mobile
YoY -16.1%
Composition ratio: 11%
21,399
18,038
5,317 4,668
362
-998 -705
-285
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
-4,000
0
4,000
8,000
12,000
16,000
20,000
24,000
FY2023 FY2024 FY2023 FY2024

16
Business Overview – Education /EdTech Segment
• The number of students increased with a high growth rate of 14% in total for
Vantan , N High School, and S High School, resulting in increased sales both in the
full -year and in 4Q
• In Vantan , newly opened schools that make use of KADOKAWA’s IP creation and expansion
capabilities, especially KADOKAWA SCHOOL OF ANIME and KADOKAWA SCHOOL OF MANGA
have driven the growth.
• In the N/S high school business, student enrollment has continued to increase, mainly due to
the opening of new campuses for in -person courses and the growing popularity of the
schools.
• 4Q saw a modest increase by 5.7% in sales, as the previous year’s results included a
temporary boost from contracted service income related to ZEN University
• A full -year increase in profit due to the above factors
In 4Q , profit declined due to the increased advertisement expense made at Vantan
in anticipation of an increase in student enrollment from FY2025 onward
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
YoY Analysis
Net sales: Full year +12.9% / +1,728M (4Q +5.7% / +204M)
Operating profit: Full year +37.9% / +655M (4Q -29.9% / -50M)
Vantan
YoY +10 .1%
Composition ratio: 71 ％
N/S high school business
YoY + 20.5 %
Composition ratio: 29 ％ 13,390
15,119
3,594 3,799
1,727
2,382
168 118
0
1,000
2,000
3,000
4,000
0
4,000
8,000
12,000
16,000
FY2023 FY2024 FY2023 FY2024

17
Business Overview – Others Segment
• Despite a decline in sales of music CDs, the MD business saw growth in sales in
the full year, with 4Q growth (+10.7%) such as online raffle services, as well as
IP -related goods performing well including overseas
• Sales in the commercial facility business remained flat. IP events held outside
Sakura Town have also performed strongly
4Q saw a decrease in sales (4Q -16.8%) , due to the absence of large –
scale contracted event operations recorded in FY2023
• In other businesses, sales declined due to factors such as the withdrawal from
the purchase and sales of some items considering their profitability (approx. -1
billion yen) , and a decline in inter -segment translations at functional subsidiaries
promoting in -Group DX (no consolidated impact. approx. -2.6 billion yen including impact of
cyberattack).
• In the MD business, operating profit grew in the full year due to factors above,
but remained flat in 4Q
• In the commercial facility business, the operating loss has narrowed both in
the full year and in 4Q due to the effect of lower depreciation costs resulting
from the impairment in FY2023 ,and ongoing cost control.
• In other businesses, operating profit declined due to factors decreasing sales at
the abovementioned functional subsidiaries (no consolidated impact. approx. -500
million yen).
20,298
17,881
5,702 5,310
-4,399
-4,204
-1,366 -992
-5,000
0
5,000
10,000
15,000
20,000
25,000
-5,000
0
5,000
10,000
15,000
20,000
25,000
FY2023 FY2024 FY2023 FY2024
Full year
(Apr. -Mar.)
4Q
(Jan. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
YoY Analysis
MD
YoY +1.5%
Composition ratio: 38 ％
Commercial facility business
YoY -0.6%
Composition ratio: 22 ％
Others
YoY -25.8%
Composition ratio: 40 ％
Net sales: Full year -11.9% / -2,417M (4Q -6.9% / -391M)
Operating profit: Full year – / + 195M (4Q – / + 374M )

Consolidated Earnings Forecasts
for the Fiscal Year Ending March 31, 2026

19
Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026
(Unit: Million JPY)
Results for
the fiscal year ended
March 31, 2025
Forecasts for
the fiscal year ending
March 31, 202 6
Year on year
(changed
amount)
Year on year (%)
Net sales 277,915 291,900 +13,984 +5.0 ％
Non -gaming 244,317 265,900 +21,582 +8.8 ％
Gaming 33,597 26,000 -7,597 -22.6 ％
Operating profit 16,651 16,700 +48 +0.3 ％
Non -gaming 7,112 12,900 +5,787 +81.4 ％
Gaming 9,538 3,800 -5,738 -60.2 ％
Ordinary profit 17,742 18,700 +957 +5.4 ％
Profit attributable to
owners of parent 7,393 11,400 +4,007 +54.2 ％
EBITDA 24,907 25,500 +592 +2.4%

20
Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026 by
Business Segment
(Unit: Million JPY)
Results for
the fiscal year ended
March 31, 2025
Forecasts for
the fiscal year ending
March 31, 202 6
Year on year
(changed amount) Year on year (%)
Publication/
IP Creation
Net sales 151,367 167,900 +16,532 +10.9%
Operating profit 8,372 11,500 +3,127 +37.3 %
Animation/Film
Net sales 51,092 55,400 +4,307 +8.4%
Operating profit 4,729 5,000 +270 +5.7%
Gaming
Net sales 33,597 26,000 -7,597 -22.6%
Operating profit 9,538 3,800 -5,738 -60.2%
Web Services
Net sales 18,038 20,800 +2,761 +15.3%
Operating profit -998 500 +1,498 –
Education/EdTe
ch
Net sales 15,119 17,600 +2,480 +16.4%
Operating profit 2,382 2,400 +17 +0.7%
Others
Net sales 17,881 16,800 -1,081 -6.0 %
Operating profit -4,204 -2,700 +1,504 –
Corporate/
Eliminations
Net sales -9,181 -12,600 -3,418 –
Operating profit -3,169 -3,800 -630 –

21
+3,127
+270
▲5,738
+1,498 +17 +1,504 ▲630
Operating profit
+16,532
+4,307 ▲7,597 +2,761 +2,480 ▲1,081 ▲3,418
Net sales
Factors for Changes in Full -year Net Sales and Operating Profit Forecasts for
the Fiscal Year Ending March 31, 2026
• Ove ra l l, both sa l e s a nd prof i t a re proje cte d to ri se on a consol i da te d ba si s.
• In the Gami ng Se gme nt, whe re the ori gi nal ELD EN RIN G and i ts D LC contri bute d si gni f i cantly duri ng F Y 2 0 2 4 ,
we proje ct a de cl i ne i n ne t sa l e s a nd prof i t. H owe ve r, we wi l l stri ve to a chi e ve re sul ts tha t e xce e d thi s fore ca st.
• In non -ga mi ng se gme nts, sol i d growth i n sa l e s a nd prof i t i s e xpe cte d.
• In addition to growth in e -books and international paper -based books, performance of domestic paper -based books is expected to
recovery from the impact of the cyberattack that occurred in FY2024
• Animation /Film: In Animation, the number of new titles will jump significantly. With this diverse lineup, we aim to achieve record results for the third
consecutive fiscal year
• Web Services: Sales and profit are expected to increase from FY2024 , when we were hit by a major cyberattack
• Education /EdTech: Despite some cost increases, continued growth is anticipated against a backdrop of rising student enrollment
• Others: Growth of the MD business and shrinking losses in the commercial facility business are expected to continue
FY2024 results277,914million yen
Publication/IP Creation
Animation/ Film
Gaming Web Services
Education/ EdTech
Others
Corporate / Eliminations
FY2025 forecast291,900million yen
Sales are projected to rise by JPY21,582
million across non -gaming segments Profit is expected to increase by JPY5,787
million across non -gaming segments
FY2024 results16,651million yen
Publication/IP Creation
Animation/Film
Gaming
Web Services
Education/ EdTech
Others
Corporate / Eliminations
FY2025 forecast16,700million yen
Gaming33,597
Gaming26,000
Non – gaming244,317
Non – gaming265,900
Gaming9,538
Gaming3,800
Overall increase in sales of JPY13,984 million
on a consolidated basis
Overall increase in profit of JPY48 million on
a consolidated basis
Non – gaming7,112
Non – gaming12,900
Unit: Million JPY
Publication /
IP Creation:

22
Operating profit Net sales
Factors for Changes in Full -year Net Sales and Operating Profit Forecasts for the Fiscal Year
Ending March 31, 2026 (Non -gaming Segments)
• Looki ng at the total across non -gami ng se gme nts, we e xpe ct to achi e ve ste ady i ncre ase s i n sal e s and prof i t, e ve n on a
pe r forma nce ba si s e xcl udi ng one -of f fa ctors such a s the ne ga ti ve i mpa ct from the F Y 2 0 2 4 cybe ra tta ck, a nd the posi ti ve
i mpa ct from cha nge s to re ve nue re cogni ti on ti mi ng i n the e -book busi ne ss
FY2024 Non -gaming Results 244.3 billion yen
FY2024 Non -gaming Results (excluding one -off impacts) Approx. 250.5 billion yen
FY2025 Non -gaming Forecast265.9 billion yen
Impact on financial results due to cyberattack Approx. +8.3 billion yen
Timing of sales recognition in e – books Impact of changes Approx. -2.3 billion yen
Impact on financial results due to cyberattackApprox. +4.7 billion yen
Timing of sales recognition in e -books Impact of changesApprox. -1.8 billion yen
FY2024 Non -gaming Results7.1 billion yen
FY2024 Non -gaming Results(excluding one -off impacts)Approx. 10.2 billion yen
FY2025 Non -gaming Forecast12.9 billion yen
JPY15.3 billion
increase even
on a
performance
basis
JPY2.7 billion
increase even
on a
performance
basis

23
Full -year Forecast – Publication /IP Creation Segment
• In domestic paper -based books, sales and profit are expected to grow through an
increase in the number of new IPs, price revisions, and improvements to return
rates despite the ongoing contraction of the entire market and prospective
increases in material and logistics expenses
• In e -books, sales and operating profits are expected to grow in FY2025 through
media mix effects with the upcoming animation lineup and enhanced sales
measures, despite the increase in sales and profit in FY2024 due to the change in
timing of sales recognition
• In international paper -based books, sales and operating profits are expected to
grow, including expected organic growth in Asia and the Americas, as well as
contributions from new bases (South Korea, France, etc.) acquired through recent M&A
FY2024 results vs. FY2025 forecast
Operating profit: -21.3 % / -2,795M (4Q +44.0% / +1,436M)
Full year
(Apr. -Mar.)
Medium to long term direction
• The number of IPs is steadily increasing towards the annual target of 7,000 in the
final year of the Mid -term Management Plan, partly due to investments in human
resources. We will continue to strengthen IP creation functions, focusing on
comics with strong media mix potential, including born -digital titles on MANGA
BAR and Kado -Comi
• Gradual improvements in efficiency are expected through increased operating
rates at digital printing factories and new logistics facilities
• In e -books, continued growth and market outperformance are expected, driven
by media mix effects and the results of investments in IP creation functions for
digital comics through MANGA BAR, Kado -Comi, etc.
• In the international business, growth will be driven by the expansion of business
scale through the proactive establishment of new bases, as well as by an increase
in the number of titles published, fueled by the creation of original local IPs and
an expansion in genres handled
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
151,367
167,900
8,372
11,500
0
3,000
6,000
9,000
12,000
15,000
18,000
0
30,000
60,000
90,000
120,000
150,000
180,000
FY2024 Results FY2025 Forecasts
YoY+10.9 ％
YoY+37.3 ％

24
51,092
55,400
4,729
5,000
0
2,000
4,000
6,000
8,000
10,000
12,000
0
10,000
20,000
30,000
40,000
50,000
60,000
FY2024 Results FY2025 Forecasts
Full -year Forecast – Animation /Film Segment
Operating profit: -21.3 % / -2,795M (4Q +44.0% / +1,436M)
Medium to long term direction
• Animation and film will form the core of our global media mix as we aim to
maximize the LTV of our IPs, including books, gaming, and MD
• In Animation, a stable and solid revenue base will be secured through continuous
investment of resources in popular series
We will develop new titles, focusing on popular original IPs, increase the diversity
of the lineup, and create and develop hit series for the next generation
We will strengthen partnerships with overseas OTT platforms and focus on media
mix strategies, including MD
We will pursue an increase in the percentage of titles produced in -house by
strengthening production systems, reinforcing our animated IP production base.
• In Film, in addition to taking on the challenge of large -scale titles, we also aim to
increase the number of theatrical titles, focusing on film adaptations of original
IPs into film titles
In addition, we aim to increase the percentage of hits by developing titles for OTT
and enhancing digital marketing efforts, driving improvements to profitability as a
result
• Both sales and profit continue to increase in the segment as a whole. In Animation,
the number of new titles will increase significantly due to a diverse lineup, including
the latest season of the popular series such as The Rising of the Shield Hero , and
continue to perform well. In Film, several theatrical titles produced and distributed
in -house will contribute to sales growth
Full year
(Apr. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen) FY2024 results vs. FY2025 forecast
YoY+8.4 ％
YoY+5.7 ％

25
Major Promising Titles of Animation in FY2025
Titles
(only publicly announced) Release
Once Upon a Witch’s Death April 2025
ZatsuTabi -That’s Journey – April 2025
The Gorilla God’s Go -To Girl April 2025
A Ninja and an Assassin Under One Roof April 2025
Please Put Them On, Takamine -San* April 2025
The Shiunji Family Children* April 2025
Our Last Crusade or the Rise of a New World Season 2 April 2025
Cultural Exchange with a Game Centre Girl July 2025
KAMITSUBAKI CITY UNDER CONSTRUCTION* July 2025
New PANTY & STOCKING with GARTERBELT July 2025
The Rising of the Shield Hero Season 4 July 2025
A Couple of Cuckoos Season2 * July 2025
Clevatess * July 2025
Captivated, by You/ Let’s Go Karaoke! July 2025
Detectives These Days Are Crazy! July 2025
See You Tomorrow at the Food Court July 2025
The Summer Hikaru Died Summer 2025
Chitose Is in the Ramune Bottle* October 2025
THE WARRIOR PRINCESS AND THE BARBARIC KING* Autumn 2025
Playing Death Games to Put Food on the Table January 2026
Sentenced to Be a Hero 2025
Alma -chan Wants to Be a Family! 2025
Young Ladies Don’t Play Fighting Games 2025
Little Shark’s Day Out: Friends in the City* August 22, 2025
*Titles from other companies’ original works
The Rising of the Shield Hero
Season 4 ©AnekoYusagi_Seira Minami/KADOKAWA/Shield Hero S4Project
The Summer Hikaru Died©Mokumokuren /KADOKAWA/The Summer Hikaru Died Partners Sentenced to Be a Hero©2024 Rocket Shokai/KADOKAWA/Project Sentenced to Be a Hero
Captivated, by You/
Let’s Go Karaoke! ©2025 Yama Wayama/KADOKAWA/Captivated, by You
The Shiunji Family Children ©Reiji Miyajima/ HAKUSENSHA /The Shiunji Family Children Partners Little Shark’s Day Out:
Friends in the City©PENGUINBOX,KADOKAWA , Little Shark’s Day Out

26
33,597
26,000
9,538
3,800
0
3,000
6,000
9,000
12,000
15,000
0
7,000
14,000
21,000
28,000
35,000
FY2024 Results FY2025 Forecasts
• Even with a forecast of declining sales and profit from FY2024 due largely
to ELDEN RING main game and DLC , we aim to achieve business results that
exceed the forecast with new hit titles and expanded sales of past titles
• FromSoftware plans to release ELDEN RING spin -off ELDEN RING NIGHTREIGN (releasing
May 30) and ELDEN RING Tarnished Edition (releasing in 2025) for the Nintendo Switch 2.
We will aim to maximize the LTV of ELDEN RING
Full -year Forecast – Gaming Segment
• At FromSoftware, steady progress is being made to establish schemes to expand
the scope of its own publishing during the period of the Mid -term Management
Plan and to build a stronger development structure for the continuous creation of
game IPs
• The Duskbloods , a completely new title (for the Nintendo Switch 2) , is expected to release in
2026
The game will offer a variety of play styles, including online multiplayer for up to eight
players, and is expected to further expand the global fanbase
• For medium – to long -term growth, we have 26 titles in the development pipeline
in total of console games and mobile games
• For mobile games, preparations are underway for the continuous release of titles
linked to anime IPs, such as 【Oshi no Ko 】. We aim to create hit titles that will
contribute to the stabilization of sales in the segment overall during the period of
the Mid -term Management Plan Full year
(Apr. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
FY2024 results vs. FY2025 forecast
Medium to long term direction
YoY-22.6 ％
YoY-60.2 ％

27
Full -year Forecast – Web Services Segment
• The segment overall and niconico -related business will record increased sales and
profit compared to FY2024 , which was impacted by the cyberattack
• Despite a reduction in infrastructure investment expenses, a decline in paid
memberships and higher expenses for content acquisition are factored in the
forecast
• In the live business, sales will grow with an increase in the number of events,
including those aimed at discovering and nurturing creators on niconico . Despite
this, higher costs will lead to a decline in profit but will remain profitable.
• Sales and operating profit will decline due to ongoing contraction of the mobile
business
Medium to long term direction
• In niconico -related businesses, we will work to increase the number of creators and
viewers through service improvements and new functionality. We will add new
payment methods, aiming to improve profitability by increasing ARPU
• We will continue to develop the increasingly popular VOCALOID* genre overseas,
and will seek to expand monetization opportunities by incorporating global users
• We will continue to devise measures to sustainably produce creators on niconico ,
who will be popular. We aim to create opportunities for creators to be active
internationally, focusing on maximizing rights licensing sales of music and other IPs
originating with niconico creators
• Collaboration with other businesses in the KADOKAWA Group will be enhanced. We
will maximize the use of niconico as the source of IP creation for the Group
* VOCALOID is a registered trademark of Yamaha Corporation.
Full year
(Apr. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen) FY2024 results vs. FY2025 forecast
18,038
20,800
-998
500
-1,000
0
1,000
2,000
3,000
4,000
-6,000
0
6,000
12,000
18,000
24,000
FY2024 Results FY2025 Forecasts
YoY+15.3 ％
YoY+1,498

28
Full -year Forecast – Education /EdTech Segment
• The business has grown to provide educational services to more than 40,000
people through the establishment of ZEN University and R High School in April
2025
Sales and profit are forecast to grow thanks to a steady increase in enrollment as a
whole segment, despite higher expenses due to depreciation expenses related to
the ZEN University system
• In Vantan , growth has been driven by the KADOKAWA SCHOOL OF ANIME and KADOKAWA
SCHOOL OF MANGA in particular, with student enrollment expected to increase by approx. 6%
• In the N/S High School business, we opened the new R High School. We expect to maintain
high growth of approx. 10% in total student enrollment at N High School, S High School, and
R High School (N High School Group)
• In the ZEN University* business, we provided technology -based educational systems and
practical classes including AI and creative aspects. 3,380 students enrolled as expected (as of
April 1, 2025) , with about 40% continuing on from N/S High School. This contributed to sales
Operating profit: -21.3 % / -2,795M (4Q +44.0% / +1,436M)
Medium to long term direction
• We will continue pursuing growth in student enrollment and ongoing expansion of
the business
• At Vantan , we will pursue continued growth by rolling out popular existing courses regionally and
actively opening new schools
The Vantan Music Academy is scheduled to open in April 2026 to nurture creators in new IP genres
• In the N high school group business, customer base will expand and growth will be maintained,
mainly reflecting continuous increase of campuses for in -person courses.
• In the ZEN University business, we will offer a consistent, unique educational program from N junior
high school and N High School Group through to the university level, with student enrollment
continuing to grow. We also expect a certain number of working adults to enroll, as well
• We will also cultivate our creators who serve as the source of sustainable growth
for our content business
We will further step up inter -school coordination in the future, and nurture highly
professional human resources
Full year
(Apr. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
FY2024 results vs. FY2025 forecast
15,119
17,600
2,382
2,400
0
2,000
4,000
6,000
8,000
10,000
0
4,000
8,000
12,000
16,000
20,000
FY2024 Results FY2025 Forecasts
YoY+16.4 ％
YoY+0.7 ％

29
17,881
16,800
▲4,204
▲2,700
▲5,000
0
5,000
10,000
15,000
20,000
-5,000
0
5,000
10,000
15,000
20,000
FY2024 Results FY2025 Forecasts
Full -year Forecast – Others Segment
• In the MD business, we plan to expand our online raffle services business
internationally, building on its strong performance in Japan (launched in Taiwan in
FY2024 ). With this contribution, the business is expected to increase sales and
profit
• In the commercial facility business, sales will increase and loss will improve.
• IP events held outside Sakura Town will be enhanced in quality based on past successes,
while also being expanded both to major cities in Japan and internationally
• Events held at Sakura Town will see efficiency improvements through an increase in the
number of events and enhanced cost controls
• Other businesses are also expecting narrowing of losses despite decreased sales
Operating profit: -21.3 % / -2,795M (4Q +44.0% / +1,436M)
Medium to long term direction
• In the MD business, we will significantly expand the scale of business
internationally by strengthening the online raffle and sales at local events, and
improve business efficiency centered on production management.
• In the commercial facility business, steady progress is being made in both sales
growth and loss reduction. We will aim to move into profitability in the future
• For IP events held outside Sakura Town, we aim to achieve continuous sales growth and
improved profitability by increasing large -scale productions that can be rolled out multiple
times in Japan and overseas
• We will continue optimizing operational costs at Sakura Town, including a review of
subcontracting arrangements
• We will also develop other new businesses.
Full year
(Apr. -Mar.)
Net
sales
Operating
profit
■ Net sales ■ Operating profit
(Unit: Million yen)
FY2024 results vs. FY2025 forecast
YoY-6.0 ％
YoY+1,505

Progress on the Mid – term Management Plan

31
Progress on the Mid -term Management Plan : Overall consolidated
Overall C onsolidated Progress
258,109
277,915
291,900
340,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
18,454
16,651 16,700
34,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
– –
No changes from the Mid -Term Management Plan targets .
Return on investment will be recovered
in the latter half of the plan
Growth Story Toward Achieving the Targets
Creativity × Motivation × Technology
IP creation Expanding new IP titles
Promoting a digital -first strategy
Improve productivity
Cultivating human resources through Education/EdTech
Uncovering creators through Web Services
Animation/Film
Gaming
MD/Events
Publication
Asia
North America
Europe, South America, etc.
Maximizing
IPs’ LTV
IP development
Media mix
Global rollout
Developing
creators
Accelerate the Global Media Mix with Technology.
Achieve sustained growth through coordination
between businesses
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

32
Progress on the Mid -term Management Plan : Publication /IP Creation Segment
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Strengthen digital media and platforms while enhancing the lineup of born
digital titles
⚫ Aim for e -book growth exceeding the domestic market
Promoting a digital -first strategy Point
2
⚫ Invest in comics and other growing genres and utilize licensing to maximize
IP value
⚫ Strengthening editorial personnel and support system to reach over 7,000
IPs in FY2027
Point
１
Creation of published IPs as the sources of the media mix and
maximization of value
⚫ Improve the profitability of the paper -based book business (FY2027 target
return rate of 24.4%) through a framework for manufacturing and shipping
at the right time and at the right quantities, and by developing new
transaction models with distributors and bookstores
Point
４
Full -scale launch of domestic publication manufacturing and
distribution DX project
⚫ Expand bases for media mix development and original IP creation to cover
major regions
⚫ International base target net sales of 35 billion yen, 6,000 published titles
in FY2027
Expansion of international bases Point
３
Progress in the Publication /IP Creation Segment
141,967
151,367
167,900 168,400
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
10,360
8,372
11,500
18,400
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
– –
The pace of sales growth has beaten the target. Through the
various measures described in the right, profit , which declined
due to the cyberattack in FY2024, is also forecast to improve
Growth at a pace exceeding the target for the plan
Improvement through various measures described in the right and price revisions
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

33
Progress on the Mid -term Management Plan : Animation /Film Segment
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Devote resources to growing popular series and expand sales as a business
foundation
⚫ Build a diverse lineup able to adapt to changing trends in domestic and
global content
Point
１
Increasing the scale and longevity of animation IP, maintaining
variety
⚫ Concentrate on major titles with a focus on KADOKAWA’s own original
works ahead of the KADOKAWA Pictures 50th Anniversary
⚫ Challenge of creating film titles toward distribution and streaming in the
global market
Point
４ Big lineup of film titles
⚫ Enhance the group animation studio framework aimed at strengthening the
infrastructure for creating animation IP
⚫ Build a common group animation studio production management
framework and HR hiring and training systems
Building a high -quality and stable animation production
framework
Point
2
⚫ Maximize IP value by expanding the global media mix along multiple front
including animation streaming, theatrical releases, video games, events
and merchandising, in collaboration with international partners, etc.
Strengthening the global media mix on multiple fronts through
integration with animation
Point
３
Progress in the Animation /Film Segment
46,060
51,092
55,400 56,500
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
4,574 4,729
5,000
6,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
– –
Animation has grown beyond the plan.
We have been taking on the challenge of creating hit film titles
Growth at a pace exceeding the target for the plan
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

34
Progress on the Mid -term Management Plan : Gaming Segment
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Invest in major video game developers and promote capital and business
alliances
⚫ Create a group structure that can steadily release new titles, enhancing the
ability to adapt to new game consoles and external platforms
Point
１ Expanding the game pipeline
FromSoftware
Spike Chunsoft
Gotcha Gotcha Games
ACQUIRE
21 titles
under
development
KADOKAWA
VIC GAME
STUDIOS
(minority stake)
5 titles
under
development
Focus on
Console
Titles
Focus on
Mobile
Games
⚫ Developing of a new publishing scheme at FromSoftware
Initiatives to further expand revenue Point
2
⚫ Maximize recognition in Japan and globally through releases and measures
timed to coincide with distribution schedules for animation
Developing mobile game titles integrated with animation IP Point
３
Progress in the Gaming Segment
25,351
33,597
26,000
49,500
0
10,000
20,000
30,000
40,000
50,000
60,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
7,950
9,538
3,800
7,000
0
2,000
4,000
6,000
8,000
10,000
12,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
– –
We have made progress building systems for the constant
releases of titles.
We also expect performance to exceed the plan , depending on
the released titles and their launch timings
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

35
Progress on the Mid -term Management Plan : Web Services Segment
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Provide new experiential value to users with new services and improved
functionality
⚫ Promote the use of creator support and social tipping, and introduce billing
options
Increasing transaction amounts through the diversification of
revenue sources
Point
2
⚫ Continue to device measures to sustainably produce creators on niconico
who will be popular
⚫ Maximize the lifetime value of content through large -scale content posting
events and renewed community engagement
⚫ Expand monetization opportunities of music IP originating on niconico
through collaborations with animation IP and strengthening development in
the VOCALOID* genre
Point
１
Strengthening creator discovery and producing as the source of
unique users
*VOCALOID is a registered trademark of Yamaha Corporation.
⚫ Merge the three companies DWANGO, BOOK WALKER and KADOKAWA
Connected (as of April 1, 2025)
⚫ Strengthen the Group’s digital businesses including niconico by
consolidating the engineers on staff, allocating development resources
optimally, and improving the efficiency of operations. Aim to develop and
cultivate new businesses that make use of the latest technologies
Point
３ Strengthen digital businesses by consolidating engineer staff
Progress in Web Services Segment
21,399
18,038
20,800
23,800
0
5,000
10,000
15,000
20,000
25,000
30,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
362
-998
500
1,800
-1,000
-500
0
500
1,000
1,500
2,000
2,500
3,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
–
–
Although the niconico business was temporarily impacted by a
cyberattack, we plan to increase transaction amounts and
improve revenue by diversifying revenue sources
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

36
Progress on the Mid -term Management Plan : Education /EdTech Segment
Progress in the Education /EdTech Segment
13,390
15,119
17,600
25,200
0
5,000
10,000
15,000
20,000
25,000
30,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
1,727
2,382 2,400
3,800
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
– –
We plan to improve profit due to higher student enrollments
and service usage while continuing proactive investments
aimed at expanding the business
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Cultivate the next generation of creators and diverse human resources with
a highly practical and specialized curriculum utilizing the Group’s expertise
⚫ Implement an animator development program in coordination with Group
animation studios and establish an ecosystem that produces talent to
KADOKAWA
Point
2
Cultivating and producing diverse human resources through
group -wide coordination
Point
１
Increasing student enrollment and service use through the
establishment of new schools and inter -school coordination
‒ As the third school, R High
School newly opened
‒ We plan to expand with the
large -scale roll out of in-person
commuter courses and further
school openings
‒ ZEN University opened in April
2025, welcoming 3,380 students
in its inaugural year
‒ The same size of enrollment is
expected next year and beyond
N High School Group ZEN University
– In addition to high school and vocational divisions, strengthen the
university and career college areas
– Develop new courses (Music Academy scheduled to open in April 2026)
– Expand into new areas (expand to Sapporo and Fukuoka in addition to
Tokyo, Nagoya and Osaka)
Vantan
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

37
Progress on the Mid -term Management Plan : Others Segment
Business Policy to Achieve Mid -term
Management Plan Targets
⚫ Focus on developing and touring with large events that utilize popular
original IPs and animation IPs
⚫ In the MD business, work to expand international sales primarily in North
America and China
Point
１ Strengthening events and the MD business
⚫ Develop community -linked events and events aimed at kids and families,
increasing repeat visitors with a focus on local residents
⚫ Continue to improve costs by streamlining facility operation
Point
2 Improving facility operation at TOKOROZAWA SAKURA TOWN
The Saitama Musashino Beer Festival
recorded more than 20,000 visitors in
total, and has become a regular event
at TOKOROZAWA SAKURA TOWN
Tokorozawa Children’s Art Festival:
until May 11, 2025
Organized events as an organizing
committee member, enabling children
toexperience art and local culture
Progress in the Others Segment
20,298
17,881
16,800
27,400
0
5,000
10,000
15,000
20,000
25,000
30,000
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
-4,399
-4,204
-2,700
-1,700
-5,000
-4,500
-4,000
-3,500
-3,000
-2,500
-2,000
-1,500
-1,000
-500
0
FY2023(Results) FY2024(Results) FY2025(Forecast) FY2027(Plan)
–
–
We plan to improve profitability through growth of the MD
business and cost improvements in the commercial
facility business
Net sales
(Unit: Million JPY) (Unit: Million JPY)
Operating profit

38
Publication IP Creation Plan and Investment in Editors
Publication IP Creation Plan
Over 7,000
Investment in Editorial Personnel and
Enhanced Support System
⚫ We are enhancing our IP creation system by hiring more editorial
personnel
⚫ We work to improve operational efficiency and productivity by
strengthening and enhancing the editorial support system,
utilizing IT services
6,209 6,430
KADOKAWA Group Publication IP Creation Plan
（Titles ）
⚫ Expansion of publications in growth genres, born digital titles, and
international original IPs
⚫ FY2024: Publication IP Production Results (year on year)
– All genres :
– Comics:
– Born digital titles:
– Original titles from international bases:
6,430 titles （ 103.6 ％）
2,136 titles （ 106.4 ％）
559 titles （ 109.2 ％）
354 titles （ 118.0 ％）
FY2023（Results) FY2024（Results) FY2025（Plan ） FY2027（Plan ）
631 654
–
（The number of people ）
KADOKAWA Editorial Personnel Plan
(Total of regular and contract employees)
FY2023（Results ） FY2024（Results ） FY2025（Plan ） FY2026（Plan ） FY2027（Plan ）
Original from international bases
Born Digital
Comics
Light novels/New literature
Children’s books/Study references
Magazines
General books/ Paperback books/Others

39
Maximizing IP by Utilizing Licensing, Events and the MD Business
Strengthening the operation of IP events Stepping up the international rollout of the
MD business
⚫ We have strengthened the development and execution of
large -scale events leveraging popular original IPs and animation IPs.
By holding in -person events, we enhance the potential of each IP
while gaining exposure and creating sales routes as part of an
aggressive IP management strategy
⚫ We will also step up global advertising activities including the
running of international events through coordination with the G lobal
business group
Planned exhibition events
featuring popular IPs
⚫ In the rollout of merchandise leveraging our own IPs and the IPs of other
companies, we will focus on expanding online lottery services
internationally while developing international event -based sales
and pop -up stores
⚫ By strengthening cross -border e -commerce and building global
distribution networks, we aim to expand global merchandise sales
The Taiwanese version of KUJIBIKIDO (“Lottery Hall”)
Global version of the KUJIBIKIDO
(“lottery hall”) service
We will expand the global rollout of
the KUJIBIKIDO online lottery service
‒ China (May 2021 ~)
‒ Taiwan (February 2025 ~)
‒ South Korea ( planned rollout in
summer 2025 )
Expansion of global
merchandise sales
Expanded international rollout of
merchandise for popular IPs
‒ Merchandise sales in Asia have seen
significant growth
‒ In North America, we are exhibiting
at events and running pop -ups in
collaboration with bookstores
We will develop tailored events featuring popular IPs, touring domestic
and international locations to bring the events to multiple locations
Ryoko Kui Exhibition & Delicious in Dungeon Exhibition are touring various locations across Japan. From April 2025 the exhibitions will be held at a venue in Hong Kong . There are Plans to later shift the exhibition to various cities in Asia Bungo Stray Dogs is a popular series in Asia
©Ryoko Kui ©Ryoko Kui, KADOKAWA/Delicious in Dungeon PARTNERS ©Ryoko Kui, KADOKAWA /Delicious in Dungeon PARTNERS
©Kafka Asagiri, Sango Harukawa/KADOKAWA ©Sunsunsun,Momoco /KADOKAWA

40
end of Dec. 2022 end of Mar. 2025 end of Dec. 2022 end of Mar. 2025
Enhancing Digital Services
UGC Platform
⁻ 14 titles * currently serialized , updated every day
Readership had grown steadily since launch
⁻ 7 titles published through MANGA Bar Comics on April 1 4,2025
Comics expected to be published monthly under the MANGA Bar
label
MANGA Bar
Kadocomi
⁻ Currently 666 serialized titles *
Features one of the largest number of
serialized titles in Japan through the
publisher’s app
⁻ More than 1 million total app downloads *
In addition to attracting many readers, it
offers new challenges for creators
Kakuyomu
⁻ More than 160,000 new titles released annually (FY2024)
Total number of posted works since establishment expected to
reach 1 million titles
⁻ Number of users (readers) continues to increase, and the number of
Kakuyomu works adapted into books per year has doubled in 5
years
Kado Kado
⁻ A serialized novel submission platform operated by Taiwan
Kadokawa
Aims to discover and nurture local IPs , with a future focus on
media mix development
Platforms for Comics
Librale of reincarnationⓒeternal 14sai 2025
Stella Testa Rossa ⓒRenga Kizima2025
Why is His Lying Majesty So Obsessed With Me?ⓒKotoko 2025 ⓒMinori Amanatsu 2025
Yokohama OutsidersⓒYoruka 2025
Days with BearⓒHiroshi Noda, Takahiro Wakamatsu 2025
CMYK Kazuou Sameda Can’t Get Over His CHUNIBYOⓒKobashiko 2025
The beloved fake little girl of the Duke familyⓒKotoko 2025 ⓒMomoyama 2025
Total number of registered users Number of posted works
Number of newly posted
works per year
Number of titles adapted
into books
FY2020 FY2024 FY2020 FY2024
628
2,800
14,500
＊As of the end of March 2025
* As of the end of March 2025
164 thousand
168 thousand

41
Expansion of international bases
South Korea
(May 2024:
O’FAN HOUSE)
BOOK ☆WALKER GLOBAL, the e -book
business aimed at global markets, has
been transferred to M12 MEDIA (formerly
J-Novel Club), with the aim of achieving
further growth through management
directed locally
We will expand bases in growing global
markets, including unexplored regions
* Net sales from international bases : including the global e -book store business
** Number of titles: When the same title is release in a different country or region, it is counted as 2. When the same title isreleased in printed and electronic formats, it is counted as 1.
Number of
companies
Number of
original IPs
FY2023
Results
16
18.1
billion yen
3,023
FY2024
Results
18
22.7
billion yen
3,905
354
FY2025
Forecast
18
26.9
billion yen
4,820
407
FY2027
Plan
Further
expand
35.0
billion yen
6,000
Further
increase
Number of
titles **
Net sales
from
international
bases *
France
(October 2024:
Vega)
:Existing bases (only major companies listed)
:New bases established in FY2024Timing of establishment or investment and company name included in parentheses

42
Promoting Market -in and
Profit -sharing Transactions
Full -scale Launch of the Publication Manufacturing and Distribution DX Project
Project Objectives Expansion of Digital Book Manufacturing
⚫ Improving the profitability and sustainability of the
paper -based book business by automating ordering,
manufacturing, and shipping processes
Market -in
Manufacturing and shipping
systems that deliver the
appropriate amount at the
appropriate time,
reflecting market needs
Profit -sharing
Motivation for efficient sales
with new transaction models,
featuring reduced net pricing
and lower return rates
× Reduc es product returns
Prevents missed sales
Improvement of profitability
Improves customer satisfaction × × ×
KADOKAWA
Bookstore
Reader
Digital logistics
facility
Digital
manufacturing
facility
Small lot printing
Instructions Replenishment
Direct delivery
On -demand ordering/ automatic tracking system
Shipping Shipping
Order Order Distributor
From 24 to 72 hours of order placement
Printing company
Large lot printing
Request Delivery
*Agency -based transactions routed through a distributor
*
*
⚫ Promote new transaction models with bookstores that
incentivize efficient sales to accelerate the publication
manufacturing and distribution DX project
⚫ More than 30 million books
have been manufactured
digitally in total
(As of January 2025)
⚫ Pilot l aunch of digital book
manufacturing for international
Group bases
(First round: KADOKAWA AMARIN ,
Thailand )
New publishing logistics flow
Operational manufacturing facility at
TOKOROZAWA SAKURA TOWN

43
Animation Planning and Development Policy
Maximizing the Value of Series Developing a Lineup Rich in Variety
⚫ We will build systems for the production of sequels to
popular animation IPs at the early stages, concentrating
allocation of the necessary resources to strengthen titles.
This will expand the number of hits and maximize series
sales
⚫ We will further cultivate and expand the user base by running
mainstream advertising campaigns and strengthening sales
promotion measures
⚫ Focusing on our own popular original IPs, we will develop new
titles to build a diverse lineup . We aim to create and nurture
the next big hit titles
⚫ We will make decisions on investments in titles by taking
into account the potential of each title and the overall
profitability balance , such as selecting titles well suited to global
release and streaming, and titles with strong merchandising
potential
Animation IP Major Series Titles Genre variety among animation IPs
Slice of life
Sports
School
Suitable for
YouTube
Light novels
Battle / action
Isekai
(“different world”)
Original
Romantic comedy
Fantasy
Suitable for
Merchandise etc. ©2024 Natsume Akatsuki, Kurone Mishima/KADOKAWA/KONOSUBA3 Partners
©Aka Akasaka x Mengo Yokoyari /Shueisha , “OSHI NO KO” Partners
©Tappei Nagatsuki , KADOKAWA/Re:ZERO3 PARTNERS ©Akumi Agitogi , Tsukiho Tsukioka /KADOKAWA/My Happy Marriage Partners

44
Strengthening the Group Animation Studio Structure
Enhancing the production structure Building a common studio management,
recruitment and training structure
A joint recruitment website for the Group’s animation studios was set u p
https://group.kadokawa.co.jp/recruit/anime -studio/
⚫ In April 2025, we newly established the Studio Business
Division , which oversees the Group’s studios. Under this
structure we will consolidate the management functions of
each studio, promote the introduction of common production
management systems and IT tools , and streamline operations
⚫ The first joint recruitment event made up by the Group’s
animation studios was held . We will strive to develop
training systems that share the Group’s expertise and improve
the work environment
⚫ By shifting production to within the Group, we will build
a high -quality and stable production system and enhance
the infrastructure for animation IP production
⚫ In February 2025, Chiptune, Inc. became a member of the
KADOKAWA Group . With the addition of Chiptune, which
possesses advanced technical expertise in cinematography and
computer graphics , stable cinematography resources are secured
for in -house production of the Group, enables high quality
animation
Building a 7 -company structure made up of
the Group’s animation production studios
New
Main titles:My Happy Marriage,The Rising of the Shield Hero
Main titles:【OSHI NO KO 】, Alya Sometimes Hides Her Feelings in Russian
Main titles:Unnamed Memory , Medalist
Production studio led by Hiroyuki Seshita , one of Japan’s most renowned full 3DCG animation directors
An experienced team, highlighted by director Tomoki Kyoda , has been brought together
Production studio directed by Koji Kajita, who has led numerous titles to success
Production studio with advanced technical capabilities in cinematography and computer graphics

45
Streaming of series
Gaming
e-commerce
Theatrical
merchandise
Original work
merchandise
campaigns
Global media mix development
Animation Business Other Initiatives
Developing a global media mix on all fronts Cultivating animators
Contribute to producing talent
for the Group Provision of lesson content
⚫ We will strengthen collaboration with global OTT operators
and promote development of a global media mix on all
fronts , covering streaming, video games, merchandising and
more. In addition, w e will expand promotional and
marketing efforts, including participation in international
events
⚫ In collaboration with Crunchyroll, to coincide with the release of
OVERLORD: The Sacred Kingdom , the global game Lord of
Nazarick was launched to maximize the advertising effects by
releasing them simultaneously . In the future, we will expand
the scheme used for this IP to other media mix IPs
⚫ In collaboration with the Group’s Education /EdTech
business, we aim to cultivate animators and produce
creative talent to join the Group
Animator
development school
©Kugane Maruyama, PUBLISHED BY KADOKAWA CORPORATION/ OVERLORD:The Sacred Kingdom Movie Partners
etc.

46
Overview of Gaming Strategy
⚫ Expanding additional contents in
games
⚫ Expanding the media mix into
comic and animation, etc.
⚫ Extending the life of IP s
⚫ Developing new publishing
schemes in Japan and globally
⚫ Improving the quality and quantity
of IP in new games
⚫ Each Group company
demonstrating their originality
⚫ Strengthen production system by
hiring and training personnel, etc.
⚫ Full -scale entry into the mobile
games business
⚫ Proactive investment by
KADOKAWA
⚫ Promoting planning and supervision
through cross -segment
Continuous
growth
Profitability
improvement
IP rollout IP creation, development
Strengthening the ability to
create IP in games
Creating games using IP in
publication and animation
Promoting expansion of IP
in games Enhanced publishing capabilities
©Nikiichi Tobita 2022 ©Bandai Namco Entertainment Inc. / ©2022 FromSoftware , Inc.
©Spike Chunsoft Co., Ltd. All Rights Reserved. ©Aka Akasaka x Mengo Yokoyari /Shueisha , “OSHI NO KO” Partners ©KADOKAWA/NHN Corp.
©Bandai Namco Entertainment Inc. / ©2025 FromSoftware, Inc.
©2025 FromSoftware, Inc. All rights reserved.
©Spike Chunsoft Co., Ltd. All Rights Reserved. ©Daisuke Aizawa,KADOKAWA /Shadow Garden ©Master of Garden Project

Appendix

48
Overview of the Corporate Governance System
◼ We have built a highly independent and objective management structure, such as ensuring that independent outside directors ma ke up a
majority on the Board of Directors, and having an independent outside director serve as Chairperson of the board
◼ Authority is delegated to executive officers, particularly the chief executive officer, to develop a structure that expedites de cision making.
◼ Groupwide risk management and compliance activities are promoted through the Risk Management Committee the the Compliance
Committee, which is chaired by an outside attorney.
◼ We have strengthened our legal compliance framework by conducting compliance training for officer -level personnel, and introduci ng
checks by legal and internal control divisions concerning outsourcing agreements.
Board of Directors
Nominating
Committee
Remuneration
Committee Audit Committee
Management Meeting
Executive Officer
Each department/subsidiary
Risk Management Committee
Compliance Committee
Business execution system
Internal Directors: 5
● ● ● ● ●
Independent Outside Directors: 7
● ● ● ● ● ● ●
President and CEO
General Meeting of Shareholders
Appointment /
dismissal
Collaboratio
n
Instructions
Reporting
Collaboration
Internal
audits
Audit
Reporting
Selection and dismissal of the Chief Executive Officer and other executive officers
Supervision of business execution
8.3%
Ratio of Outside Directors
58.3%
25.0%
Ratio of female Directors
Ratio of foreign directors
Composition of the
Board of Directors
Appointment / dismissal
Accounting
Auditor
Auditing
Office

49
Skills Matrix of the Directors
■ The skills matri x following the Annual General Meeting of Shareholders held in June 2025 will be as shown in the table below.
Name Corporate
management
Content
production
Sales
Marketing
IT and
technology
Financial
accounting
Legal
governance
Personnel
affairs and
human
resource
development
International
experience
Other
industries /
diversity
Takeshi Natsuno ○ ○ ○ ○
Naohisa Yamashita ○ ○ ○ ○
Shinobu Murakawa ○ ○
Noriko Kase ○ ○ ○
Nobuo Kawakami ○ ○ ○ ○
Hiroo Unoura ○ ○ ○ ○
Ruth Marie Jarman ○ ○ ○ ○
Tadaaki Sugiyama ○ ○
Yu Sasamoto ○ ○ ○ ○
Ayumi Uzawa ○ ○ ○
Etsuko Okajima ○ ○ ○
Koichi Kusano ○ ○ ○

50
550
840
3,950
3,350
1,080
860
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Net sales of regular paperbacks (left axis)
Net sales of light novels (left axis)
Net sales of comics (left axis)
Net sales of general books and pocket editions (left axis)
Net sales of children’s books (left axis)
Net sales of magazines (left axis)
0%
5%
10%
15%
20%
25%
30%
35% Return rate (right axis)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
0
10,000
20,000
30,000
40,000
50,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Net sales of paper-based books (left axis)
Net sales of e-books/magazines (left axis)
Net sales of paper-based magazines (left axis)
Accumulated e-book titles (right axis)
Sales trend of Publication /IP Creation Segment
Publication /IP Creation Segment
Sales trend of paper -based
books /magazines and returns rate
(KADOKAWA Non -consolidated)
(Million JPY) (Titles)
158,319
*Accumulated e -book titles include the number of distribution by chapter
39,644 YoY-0.7%▼
（ Million JPY ） （Percentage)
28%YoY+3.5pt
YoY-10.4%▼

51
121
248
702
409
49
135
129
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Regular paperbacks Light novels
Comics General books/Pocket editions/Others
Children’s books Magazines
Born-digital IPs
Number of new IPs of paper -based books
and magazines by genre (Actual)
Publication /IP Creation Segment
1,793
YoY+8.6 ％▼
Titles contributing to sales
（Titles ）
*Total of IPs including Group companies’ and born -digital titles in addition to KADOKAWA non -consolidated paper -based books
(c)KIYOHIKO AZUMA/ YOTUBA SUTAZIO
Yotsuba &!（16 ）
(c)Fujiazuki 2025(c)Yuka Tachibana,Yasuyuki Syuri 2025
©Sumiko Arai
The Guy She Was
Interested In Wasn’t a
Guy at All, Vol. 3
The Saint’s Magic Power
Is Omnipotent （10 ）
©2025 EDIT
The Five Star Stories （18 ）

52
E -books /magazines
E -book Business
0
40,000
80,000
120,000
160,000
0
4,000
8,000
12,000
16,000
20,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Net sales of e-books/magazines (left axis)
Accumulated titles of ebooks (right axis)
158,319
Trend of net sales
0
200
400
600
800
1,000
1,200
1,400
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Trend of international net sales
Net sales breakdown
(April to March)
Global usage situation (MPU)
Comic
77 %
Other
23 %
130
150
170
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
14,796 YoY-15.8 ％
(Million JPY) (Million JPY)
(Thousand people)
YoY+6.4 ％▼
YoY-2.9 ％▼
*Accumulated titles of ebooks include the number of distribution by chapter
*MPU (Monthly Paid User)

53
0
2,000
4,000
6,000
8,000
10,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Others (including production subsidiaries)
Domestic merchandising
Domestic streaming
International
14 16
15 13
15 12
11 10
FY2023 FY2024
1Q 2Q 3Q 4Q
Net sales of animation business
Animation /Film Segment
9,826
YoY+8.8 ％▼
Titles contributing to sales The number of
animation titles
TV/Web broadcasts
47
Theater
movies
4
55▼
Number of new titles
Breakdown by media in
Apr. to Mar.
*Number of titles including minor investment
(Million JPY)
15 ％
50 ％
20 ％
14 ％
51▼
©Akumi Agitogi , Tsukiho Tsukioka/KADOKAWA/My Happy Marriage Partners
©TSURUMAIKADA,KODANSHA /Medalist Partners
©Koyoshi Nakayoshi /SQUARE ENIX, Isekai Red Partners
The Red Ranger
Becomes an Adventurer
in Another World ©2022 Kuji Furumiya /KADOKAWA/ Project Unnamed Memory
Medalist My Happy Marriage
Unnamed Memory

54
20.0%
40.0%
60.0%
80.0%
0
3,000
6,000
9,000
12,000
15,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
Animation: In-house licensing sales (Internal transaction)
Publication: In-house licensing sales (Internal transaction)
Animation: Licensing sales to other companies (External transaction)
Publication: Licensing sales to other companies (External transaction)
OP margin in total
20.0%
40.0%
60.0%
80.0%
0
12,000
24,000
36,000
48,000
FY2020 FY2021 FY2022 FY2023 FY2024
Animation: In-house licensing sales (Internal transaction)
Publication: In-house licensing sales (Internal transaction)
Animation: Licensing sales to other companies (External transaction)
Publication: Licensing sales to other companies (External transaction)
OP margin in total
Yearly basis
Sales and Operating Margin of Rights -Licensing in Publication and Animation Businesses
（ K A D O K AWA N o n -c o n s o l i d a t e d ）
Quarterly basis
(Million JPY) （ Million JPY ）
* The operating margin related to rights -licensing sales is a managerial accounting figure estimated based on certain definitions. This figure is higher than
actual because many expenses are not taken into account, such as costs related to IP creation and costs from back -office departm ents.
YoY+12.4 ％ ▼
YoY+20.5 ％ ▼

55
FY2024
Net Sales of the Top Ten Best -Selling Titles （ i n c lu d i n g s a l e s f r o m r i g h t s -l i c e n s i n g , K A D O K AWA N o n -c o n s o l i d a t e d ）
Publication /IP Creation
Animation /Film
* Applies to entire series from starting year of publication to the latest release
* Applies to all titles from starting year of broadcast to the latest airing
Million JPY
Rank Title Name (Series) Year First
Aired
1 【OSHI NO KO 】 2023
2 Re:ZERO -Starting Life in Another World – 2016
3 Overlord 2015
4 Delicious in Dungeon 2023
5 KONOSUBA: God’s Blessing on This
Wonderful World! 2016
6 Alya Sometimes Hides Her Feelings in Russian 2024
7 Unnamed Memory 2024
8 The Eminence in Shadow 2022
9 Bungo Stray Dogs 2016
10 Medalist 2025
Rank Title Name (Series) Year First
Published
1 Pan Dorobou 2020
2 Sword Art Online 2009
3 Delicious in Dungeon 2015
4 KADOKAWA Manga Gakushu Series 2015
5 Re:ZERO -Starting Life in Another World – 2014
6 Bungo Stray Dogs 2013
7 Mushoku Tensei: Jobless Reincarnation 2014
8 Spice and Wolf 2006
9 Overlord 2012
10 The Irregular At Magic High School 2011
0 1,000 2,000 3,000 4,000 5,000 6,000
【OSHI NO KO 】
Re:ZERO -Starting Life in Another World-
Delicious in Dungeon
Overlord
Bungo Stray Dogs
Pan Dorobou
The Eminence in Shadow
KONOSUBA: God’s Blessing on This Wonderful
World!
Alya Sometimes Hides Her Feelings in Russian
Sword Art Online
Publication/IP Creation Segment (Books and Magazines)
Publication/IP Creation Segment (Rights-licensing and others)
Animation/Film Segment
Gaming Segment, Others

56
Books
Eagerly Awaited Upcoming Titles
Animation
© DUBU(REDICE STUDIO), Chugong, h -goon 2018 / D&C MEDIA ©Ao Kojima 2025
（C）Kotoko 2025 (C) Momoyama 2025
The Beloved Fake Little
Girl of the Duke Family,
Vol.1
Books Galore, Vol.2 Solo Leveling, Vol.21
To Sir, Without Love:
I‘m Divorcing You IV
(C)Iroto Tsumugi (C)Kori Hisakawa (C)Airumu / KADOKAWA CORPORATION ©Reiji Miyajima/ HAKUSENSHA /The Shiunji Family Children Partners ©Saka/KADOKAWA/Once Upon a Witch’s Death Project
©Kenta Ishizaka/KADOKAWA/ ZatsuTabi Partners ©2025 Shirohi,Mika Kamisu /KADOKAWA/ The Gorilla God’s Go -To Girl Partners
The Shiunji Family
Children
Once Upon a Witch’s
Death
ZatsuTabi
-That’s Journey –
The Gorilla God’s
Go -To Girl

57
Trend of sales of Gaming segment
Gaming Segment
Titles contributing to sales
Downloadable Content
“SHADOW OF THE ERDTREE”
for “ELDEN RING”
FY2023 FY2024
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Number of newly
released titles for
consoles and PCs
2 3 1 3 5 1 1 1
Total number of
copies sold
(million copies)
0.98 1.80 0.87 1.10 1.33 0.93 1.88 1.89
Eagerly awaited upcoming titles
0
3,000
6,000
9,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
New Titles for consoles and PCs Repeat sales for consoles and PCs
Royalties for consoles and PCs Other
7,145YoY+13.9 ％ ▼
©Bandai Namco Entertainment Inc. / ©2024 FromSoftware, Inc.
©Bandai Namco Entertainment Inc. / ©2022 FromSoftware , Inc.
“ELDEN RING”
“ELDEN RING NIGHTREIGN”
Releasing Worldwide
in May 30,2025
©Bandai Namco Entertainment Inc. / ©2025 FromSoftware, Inc.
※Total number of titles and copies sold by Group Companies themselves in any region
“The Duskbloods ”
Releasing Worldwide in 2026
©2025 FromSoftware, Inc. All rights reserved.

58
Community Platform Related Business( Niconico and Fan -community Business)
Niconico user data Niconico Channel user data
Age
Fan -community service 「sheeta 」
Regular members (Million) 107.47
Premium members (Million) 0 .98
Number of channels 11,543
Number of channels with monthly fee 2,450
Dues -paied members (Million) 1.16
*As of March 31, 2025
2.8%
22.7% 36.0% 20.6% 11.9%
6.0%
0% 20% 40% 60% 80% 100%
10s 20s 30s 40s 50s Others
Niconico Chokaigi 2025
Visitors (Thousand) 132
*As of March 31, 2025
*As of March 31, 2025
Number of channels with monthly fee
Dues -paied members (Thousand )
132
245
*As of March 31, 2025

59
GMV (Gross Merchandise Value) of Community Platform -related Business
Uptick since the restoration of services
following a cyberattack that occurred
from June to September, 2024
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Pay Per View billing
Niconico points (gifts, niconico advertising, other niconico point consumption)
Premium member billing
Fan community (niconico Channel, Sheeta)
• Despite the number of niconico premium members trending downward, the overall community platform business which utilizes
the platform ( niconico business + fan community business) has seen an uptick in merchandise volume (GMV in the latest quarter
reached over 6 billion yen)
• We will diversity the business portfolio and revenue opportunities, promote higher ARPU, and aim to achieve sustainable growt h
for the entire business
CAGR: 5.4 ％

60
Trend of Number of N & S High School Students
Education /EdTech Segment
Trend of Number of Vantan Students
0
10,000
20,000
30,000
40,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY2023 FY2024
(Students ) 32,520
Number of
enrolled students
(As of Mar. 2025) 9,172
Number of
enrolled students
(As of April 2025)
0
3,000
6,000
9,000
FY2022
April
FY2023
April
FY2024
April
FY2025
April
(Students )
YoY+14 ％▼
YoY+6 ％▼

61
251 244 175 398 217 852 595 547 4,683 5,356 5,178 4,985 5,867 5,813 6,336 6,992
3,471 3,008 3,076 3,452
4,343 4,753 2,829
4,430 1,611 1,613 1,949 1,308
2,065
7,193
4,843
2,481
0
5,000
10,000
15,000
20,000
FY2023 1Q 2Q 3Q 4Q FY2024 1Q 2Q 3Q 4Q
Breakdown of International Net Sales by Segment
International Net Sales
Americas 58.6% 56.2 ％ 51.3 ％ 51.6% 58.4% 57.8 ％ 53.5% 50.6%
Asia 32.6% 34.7 ％ 37.9 ％ 40.3% 32.8% 28.5 ％ 36.4% 39.7%
Others 8.8% 9.1 ％ 10.8 ％ 8.1% 8.7% 13.7 ％ 10.1% 9.7%
B r e a k d o w n
b y r e g i o n
Animation/Film Gaming
Others Publication/IP Creation
(Million JPY)
* Business results for international subsidiaries are reflected in KADOKAWA’s consolidated financial results on a three -month de lay.
12,494
10,018 10,222 10,379 10,145
18,612
14,452
YoY
+42.4 ％ 14,605

62
Capital Investment*
Capital Investment and Depreciation
Depreciation
3,128
6,639
1,850
5,824
7,494
6,420
0
5,000
10,000
15,000
FY2023 FY2024 FY2025
(Forecast)
8,270
■ Purchase of property, plant and equipment
■ Purchase of intangible assets
8,952
(Million JPY)
6,735
7,679 7,840
0
2,000
4,000
6,000
8,000
FY2023 FY2024 FY2025
(Forecast)
(Million JPY)
14,134
* “Capital investment” is a cash -based amount. It is the total of “purchase of property, plant and equipment” and “purchase of int angible assets” listed in the consolidated statement of cash
flows, and includes consideration for non -current assets acquired in the previous fiscal year (Fiscal Year n -1) for which expend itures were made in the current fiscal year (Fiscal Year n).

63
Balance Sheet Situation
• A third -party allotment of 50 billion yen was executed in January 2025, establishing a more sound financial base while
maintaining adequate borrowing capacity
• There are no changes to our basic financ e policies. (Next page)
Total assets
340.3 billion yen
Cash and
deposits
105.3 billion
yen
Net assets
212.5 billion yen
Liabilities
127.7 billion yen
Interest -bearing debt
25.8 billion yen
As of March 31, 2024
Equity ratio: 56.0%
Net Cash: 79.5 billion yen
(1)
Investment
Invested funds:
20.5 billion yen
(2)
Dividend
Shareholder dividend:
4.1 billion yen
(Dividend per share: 30 yen)
FY24
Capital allocation
As of March 31, 2025
Total assets
410. 0 billion yen
Cash and
deposits
145.5 billion
yen
Net assets
277.4 billion yen
Liabilities
132. 6 billion yen
Interest -bearing debt
27.3 billion yen
Equity ratio: 60.9%
Net Cash: 118.2 billion yen

64
(Repost) Basic Finance Policy
Basic
approach
Basic policy
Key KPIs
Allocation
of funds
Execution of financial strategies that contribute to sustainable growth of sales and
profit, capital efficiency that exceeds the cost of capital, and the medium – to long -term
increase of corporate value
Pursue capital efficiency and
strengthen shareholder returns
Ensure financial soundness
A capital adequacy ratio ranging between around
50% and 60% should be considered to be the proper
standard that should be maintained going forward.
Aim to achieve an ROE of at least 12%
in the medium -to -long -term
Shareholder return Growth investments
Assume a maximum
investment of about 2/3 of
operating cash flow by making
the strategic facilitation of
core businesses and growth
investments such as M&A
activities the top priority.
Shareholder dividend
Seek to achieve a
payout ratio of 30% or
more and set a lower
limit of 30 yen per share
for the annual dividend
Acquisition of
treasury stock
Flexible implementation
in consideration of
investment capacity,
stock price level, etc.
Foundation funds
Set the level of cash and cash
equivalents to be retained
based on approximately 2.5
months of monthly sales,
working capital, future capital
needs, etc.
• In terms of KPIs for our basic policy, the ROE target is at least 12%. We specify a range to indicate the upper and lower limits
of the capital adequacy ratio and seek to achieve the compatibility of ensuring financial soundness and the pursuit of
capital efficiency
• Again, clearly state that an annual dividend of 30 yen per share will certainly be paid to shareholders.

65
FAQ
A m o n g t h e G r o u p ‘ s o v e r s e a s s a l e s , o n l y a s m a l l a m o u n t i n v o l v e t h e p h y s i c a l e x p o r t o f a c t u a l g o o d s t o t h e U n i t e d S t a t e s , a n d
f r o m t h a t p e r s p e c t i v e w e c u r r e n t ly b e l i e v e t h a t a n y i m p a c t o n o u r f i n a n c i a l p e r f o r m a n c e w i l l b e m i n o r . A t t h i s p o i n t w e d o n o t
p l a n o n m a k i n g a n y c h a n g e s t o o u r f u t u r e p l a n s d u e t o t h i s i m p a c t , b u t w e w i l l c a r e f u l l y m o n i t o r h o w c o n d i t io n s d e v e l o p g o i n g
f o r w a r d .
Q01
A
W h a t w i l l b e t h e i m p a c t o f U S t a r i f f m e a s u r e s o n y o u r b u s i n e s s o p e ra t i o n s a n d f i n a n c i a l r e s u l t s ?
T h e g r o w t h r a t e o f s a l e s e x c l u d i n g t h e i m p a c t o f f o r e i g n e x c h a n g e ( a p p r o x i m a t e l y + 3 . 2 b i l l i o n J P Y ) w a s + 6 . 4 % i n t h e A p r i l t o
M a r c h p e r i o d . I n t h e J a n u a r y t o M a r c h p e r i o d , t h e g r o w t h r a t e o f s a l e s e x c l u d i n g t h e i m p a c t o f f o r e i g n e x c h a n g e
( a p p r o x i m a t e l y + 0 . 4 b i l l i o n J P Y ) w a s -0 . 3 % .
A s s a l e s f r o m r i g h t s -l i c e n s i n g ( r o y a l t i e s ) a c c o u n t s f o r a c e r t a i n p e r c e n t a g e o f i n t e r n a t i o n a l s a l e s , w e b e l i e v e t h a t c o s t s
a f f e c t e d b y f o r e i g n e x c h a n g e r a t e s a r e l i m i t e d , b u t s i n c e i t i s d i f f i c u l t t o i d e n t i f y t h e s e c o s t s a c c u r a t e l y , w e h a v e n o t e s t i m a t e d
t h e i r i m p a c t o n p r o f i t .
Q02
A
W h a t w a s t h e i m p a c t o f f o r e i g n e x c h a n g e r a t e s f r o m A p r i l t o M a r c h , a n d J a n u a r y t o M a r c h o f t h e c u r r e n t f i s c a l y e a r ?
A d d i t i o n a l l y , w h a t w a s t h e g r o w t h r a t e f o r s a l e s a n d o p e r a t i n g p r o f i t e x c l u d i n g t h e f o r e i g n e x c h a n g e i m p a c t ?
T h e f o r e i g n e x c h a n g e i m p a c t o n s a l e s i n t h e p a p e r -b a s e d b o o k b u s i n e s s e s o f i n t e r n a t i o n a l s u b s i d i a r i e s f r o m A p r i l t o M a r c h w a s
a b o u t + 1 . 1 b i l l i o n y e n , a n d e x c l u d i n g t h i s , t h e s a l e s g r o w t h r a t e w a s a b o u t + 2 0 . 5 % . I n t h e J a n u a r y t o M a r c h p e r i o d , t h e
f o r e i g n e x c h a n g e i m p a c t o n s a l e s w a s a b o u t + 0 . 2 b i l l i o n y e n , a n d e x c l u d i n g t h i s , t h e s a l e s g r o w t h r a t e w a s a b o u t
+ 5 1 . 3 % .
Q03
A
W h a t w a s t h e i m p a c t o f f o r e i g n e x c h a n g e r a t e s o n t h e p a p e r -b a s e d b o o k b u s i n e s s e s o f i n t e r n a t i o n a l s u b s i d i a r i e s f r o m A p r i l t o
M a r c h , a n d J a n u a r y t o M a r c h o f t h e c u r r e n t f i s c a l y e a r ? A n d w h a t i s t h e g r o w t h r a t e o f s a l e s e x c l u d i n g t h e e f f e c t o f e x c h a n g e
r a t e s ?

66
FAQ
T h e r a t i o o f s a l e s a t t h e C o m p a n y ’ s o w n s t o r e s ( B O O K ☆ W A L K E R ) t o s t o r e s o f o t h e r c o m p a n i e s w a s 1 : 4 , a n d t h e g r o w t h r a t e s
a r e + 0 . 4 % ( B O O K ☆ W A L K E R ) a n d + 7 . 1 % ( o t h e r c o m p a n i e s ’ s t o r e s ) f r o m A p r i l t o M a r c h . F r o m J a n u a r y t o M a r c h , t h e r a t i o o f
s a l e s w a s 1 : 4 , a n d t h e g r o w t h r a t e s o f t h e m a r e -0 . 9 % a n d -2 1 . 9 % e a c h .
Q05
A
F o r s a l e s a m o u n t s o f e -b o o k s f r o m A p r i l t o M a r c h , a n d f r o m J a n u a r y t o M a r c h , w h a t w a s t h e r a t i o o f s a l e s f r o m t h e C o m p a n y ’ s
o w n s t o r e t o t h o s e o f o t h e r c o m p a n i e s , a n d w h a t w e r e t h e g r o w t h r a t e s o f e a c h ?
S h a r e b y g e n r e : C o m i c s 2 9 % , g e n e r a l b o o k s a n d p o c k e t e d i t i o n s 3 4 % , l i g h t n o v e l s 1 1 % , p a p e r b a c k b o o k s 1 0 % , c h i l d r e n ’ s
b o o k s 1 0 % , m a g a z i n e s 6 %
G r o w t h r a t e b y g e n r e : c o m i c s -1 4 % , g e n e r a l b o o k s a n d p o c k e t e d i t i o n s -3 % , l i g h t n o v e l s -1 5 % , p a p e r b a c k b o o k s -8 % ,
c h i l d r e n ’ s b o o k s -9 % , m a g a z i n e s -2 2 % ( K A D O K A W A n o n -c o n s o l i d a t e d b a s i s ) . T h e a b o v e r e s u l t s i n c l u d e t h e i m p a c t o f t h e
c y b e r a t t a c k .
Q06
A
F r o m A p r i l t o M a r c h , w h a t w e r e t h e s h a r e s a n d g r o w t h r a t e s f o r p a p e r -b a s e d b o o k s a n d i n f o r m a t i o n m e d i a s a l e s b y g e n r e ?
D o m e s t ic s a l e s f r o m s t o r e s o f o t h e r c o m p a n i e s w a s p r e v i o u s l y r e c o r d e d b a s e d o n f i n a l r e p o r t s r e c e i v e d f r o m e a c h s t o r e , b u t
s t a r t i n g f r o m t h e f o u r t h q u a r t e r o f t h e f i s c a l y e a r e n d e d M a r c h 3 1 , 2 0 2 4 , w e c h a n g e d t o a l s o r e c o r d i n g e s t i m a t e s b a s e d o n
p r e l i m i n a r y d a t a r e c e i v e d f r o m s o m e s t o r e s o f o t h e r c o m p a n i e s . S a l e s t h a t w e r e p r e v i o u s l y r e c o r d e d i n t h e f o l l o w i n g m o n t h o r
l a t e r a r e n o w e s t i m a t e d a n d r e c o r d e d i n a d v a n c e . T h e a b o v e i m p a c t a l s o o c c u r r e d b y 3Q o f F Y 2 0 2 4
Q04
A
W h a t w e r e t h e c h a n g e s o f r e v e n u e r e c o g n it io n t im i n g f o r d o m e s t i c s a l e s a t s t o r e o f o t h e r c o m p a n i e s i n t h e e -b o o k b u s i n e s s ?

67
FAQ
S a l e s o f p a p e r -b a s e d b o o k s w e r e a p p r o x i m a t e l y 8 0 % a n d s a l e s o f e -b o o k s w e r e a p p r o x i m a t e l y 2 0 % o f t h e t o t a l i n t e r n a t i o n a l
s a l e s o f t h e p u b l i c a t i o n s e g m e n t .
Q07
A
W h a t w e r e t h e r a t i o o f p a p e r -b a s e d b o o k s a n d e -b o o k s i n t h e i n t e r n a t i o n a l s a l e s o f t h e P u b l i c a t i o n / I P C r e a t i o n S e g m e n t f r o m
A p r i l t o M a r c h ?
W e d o n o t d i s c l o s e s a l e s r e s u l t s a n d f o r e c a s t s f o r i n d i v i d u a l t i t l e s .
Q09
A
W h a t a r e t h e a c t u a l a n d p r o j e c t e d s a l e s o f t h e D L C f o r E L D E N R I N G i n t h i s f i s c a l y e a r ?
T h e s h a r e s f o r t h e t o p 1 0 b e s t -s e l l i n g t i t l e s c o n s i s t e d o f 5 % i n t h e P u b l i c a t io n / I P C r e a t i o n S e g m e n t a n d 3 8 % i n t h e
A n i m a t i o n / F i lm S e g m e n t .
Q08
A
F r o m A p r i l t o M a r c h , w h a t w e r e t h e s a l e s s h a r e s o f t h e t o p 1 0 b e s t -s e l l i n g t i t l e s i n t h e P u b l i c a t i o n / I P C r e a t i o n S e g m e n t a n d
t h e A n i m a t i o n / F i l m S e g m e n t ?
W e d o n o t d i s c l o s e f o r e c a s t s r e g a r d i n g s a l e s o r n u m b e r o f c o p i e s s o l d f o r i n d i v i d u a l t i t l e s . W e a r e a l s o n o t d i s c l o s i n g t h e
s t a t u s o f p r e -o r d e r s a t t h i s t i m e .
Q10
A
W h a t a r e y o u r f o r e c a s t s f o r F Y 2 0 2 5 s a l e s t u r n o v e r a n d t h e n u m b e r o f c o p i e s s o l d f o r E L D E N R I N G N I G H T R E I G N , w h i c h w i l l
l a u n c h o n M a y 3 0 , 2 0 2 5 ?

68
FAQ
( 1 ) A t t h i s p o i n t w e h a v e y e t t o a n n o u n c e a s p e c i f i c r e l e a s e d a t e .
( 2 ) I t w i l l b e s o l d o n a j o i n t b a s i s w i t h N i n t e n d o C o . , L t d . , w i t h s a l e s r e s p o n s i b il i t i e s d i v i d e d b y r e g i o n .
( 3 ) T h e t i t l e w i l l o n l y b e a v a i l a b l e f o r t h e N i n t e n d o S w i t c h 2 .
( 4 ) W e d o n o t d i s c l o s e f o r e c a s t s r e g a r d i n g n u m b e r o f c o p i e s s h i p p e d f o r i n d i v i d u a l t i t l e s .
Q11
A
R e g a r d i n g D u s k b l o o d s , w h i c h i s s l a t e d f o r a 2 0 2 6 r e l e a s e :
( 1 ) W h a t i s t h e s p e c i f i c r e l e a s e d a t e ? ( 2 ) W h a t i s t h e s a l e s s c h e m e i n J a p a n a n d o v e r s e a s ?
( 3 ) W h a t p l a t f o r m s w i l l b e s u p p o r t e d ? ( 4 ) H o w m a n y c o p i e s d o y o u e x p e c t t o s e l l ?

©KADOKAWA CORPORATION 202 5
• T h i s d o c u m e n t i s a t r a n s l a t i o n o f t h e o r i g i n a l J a p a n e s e d o c u m e n t a n d i s o n l y f o r r e f e r e n c e p u r p o s e s . I n t h e e v e n t o f a n y d i s c r e p a n c y b e t w e e n t h i s
t r a n s l a t e d d o c u m e n t a n d t h e o r i g i n a l J a p a n e s e d o c u m e n t , t h e l a t t e r s h a l l p r e v a i l .
• F o r w a r d -l o o k in g s t a t e m e n t s s u c h a s r e s u l t s f o r e c a s t s c o n t a in e d i n t h i s m a t e r i a l a r e j u d g m e n t s o f t h e G r o u p b a s e d o n c u r r e n t l y a v a i l a b l e i n f o r m a t io n .
• T h e f o r w a r d -l o o k i n g s t a t e m e n t s i n c l u d e v a r i o u s u n c e r t a i n t i e s , a n d a c t u a l r e s u l t s m a y d i f f e r f r o m t h e s e v a l u e s . P l e a s e r e f r a i n f r o m m a k i n g
i n v e s t m e n t j u d g m e n t s , e t c . b y r e l y i n g e n t i r e l y o n t h e s e v a l u e s .