Kadokawa Corp FY2024 Q3 Earnings Release

Nov, 2024 Earnings Results
The 2 nd Quarter Ended September 30, 2024 ｜ November 7, 2024

Agenda
1. System Failure Caused by Large -scale Cyberattack P2
2. Consolidated Earnings Forecasts
for the Fiscal Year E nding March 3 1, 20 25 P5
3. Consolidated Earnings Results for the 2 nd Quar ter
for the Fiscal Year E nding March 3 1, 20 25 P10
4. Progress on t he Mid -term Management Plan P22
5. Appendix P32

System Failure Caused by Large – scale Cyberattack

3
System Failure Caused by Large -scale Cyberattack : Causes, Countermeasure s and
the Status of Impacted Businesses
■ Imp a ct o n B u si n ess Act i vi t ies a n d Cu rre n t S t a t u s
■ Ca u se s a n d Co u n t ermea sures t o Pre vent Re currence
Cause s Countermeasures
• It is presumed that the root cause of this incident
is that the account information of employees was
stolen through phishing and other attacks
• The stolen account information led to a breach of
our internal network, leading to the execution of
ransomware and the personal information
leakage
• Implementation of measures to prevent recurrence based on advice
and checks by a major outside security firm
• The main measures have already been implemented, and other
measures are being rolled out according to the plan.
• Another outside security firm has confirmed that we have properly
analyzed the causes of this incident and are appropriately introducing
and promoting various countermeasures.
• We will promote ongoing improvements to its security systems
including but not limited to the action to prevent this incident from
recurring
Business Impacts Occurring from
June 2024 Onward Status as of November 7, 2024
Impact on
Business
Operations
Publication /
IP Creation
•Shipments of domestic existing paper –
based books decreased to one -third of
normal levels
•The production of domestic paper book
reprints was implemented according to
order of priority
•Shipments of existing paper -based books have
recovered to normal levels
•DOT* has also been restarted
•Production of reprints has returned to normal levels
Web
Services
•General suspension of N iconico Services
•N iconico account login functions failed •Key services have been fully restored
* Direct Order Tablet: System
to process direct orders with
book stores

4
System Failure Caused by Large -scale Cyberattack : Status of Information Leakage and
Prevention of Secondary Damage
◆ Information confirmed to have leaked externally (as of November 1)
✓ Number of pieces of information leaked (information concerning 261,956 people in total)
➢ Personal information: Information related to DWANGO Co., Ltd., KADOKAWA DWANGO Educational Institute, N
Progressive School, N/S High Schools
➢ Corporate information: Written contracts concerning DWANGO Co., Ltd., etc.
※ The number of pieces of information leaked was increased by 7,715 people from the latest announcement regarding leaked information
(August 5). The additions were newly determined after conducting detailed additional checks after the leak was announced.
The additional information determined to have been leaked was stolen at the time of the cyber -attacks (up to June 8), and was not newly
stolen over the period from that time to the present.
■ Prevention of Secondary Damage Related to the Information Leaks Including Legal Measures
◆ Strict measures are taken to minimize all of those involved from suffering secondary damages and to ensure their rights
and interests, including privacy, are protected.
➢ During ongoing monitoring, the response team identified posts recognized as malicious that involved spreading
information that had been disclosed by the organization alleged to have carried out the cyber -attacks on anonymous
bulletin boards and social media. Requests for deletion and the disclosure of information are underway with the
operators of the websites concerned
➢ To preserve evidence of those who have spread the information with highly malicious intent, we are engaged in legal
measures including criminal prosecution and criminal charges
✓ Number of Cases of Acts of Information Dissemination Recognized as Malicious (as of November 1)
✓ DWANGO Co., Ltd.: 934
✓ KADOKAWA DWANGO Educational Institute: 70
✓ Number of Deletion and Disclosure Requests: 385
✓ Progress of Legal Measures: Legal actions in progress in cooperation with lawyers and outside experts, etc.
■ Overview of Information Leak age

Consolidated Earnings Forecasts for the Fiscal Year Ending
March 31, 2025

6
System Failure Caused by Large -scale Cyberattack: Impact on Business Performance
(Unit: Million JPY)
Impact on the
Full Year
(Previous forecasts)
Impact on the
Full Year
(Revised forecasts)
Difference from
previous
forecasts Impact on 1Q
（ Results ）
Impact on 2Q
（ Results ）
Impact on 2H
(Forecasts)
Impact on Net Sales -8,400 -7,700 -2,600 -4,900 -200 +700
Publication /IP
Creation
(Domestic paper -based books)
-3,000 -3,250 -1,350 -1,800 -100 -250
Web Services -5,400 -3,950 -1,250 -2,600 -100 +1,450
Others – -500 – -500 – -500
Impact on Operating Profit -6,400 -4,700 -1,900 -2,750 -50 +1,700
Publication /IP
Creation
(Domestic paper -based books)
-1,600 -1,650 -800 -850 – -50
Web Services -4,800 -2,550 -1,100 -1,400 -50 +2,250
Others – -500 – -500 – -500
Extraordinary Losses※ Losses related to compensation to creators on the niconico service and work to investigate the incident and restore systems
3,600 2,400 2,000 350 50 +1,200
The impact of the incident on full -year business performance is expected to be less than the previous forecast s

7

• T h e i m p a c t o n b u s i n e s s p e r f o r m a n c e s b y c y b e r a t t a c k s h a v e a l m o s t c o m e o u t b y 2 Q
• S a l e f o r e c a s t w a s r e v i s e d u p w a r d l y d u e t o f a v o r a b l e p e r f o r m a n c e i n A n i m a t i o n a n d t h e v i e w t h a t t h e d e c r e a s e i n s u b s c r i b e r s d u e t o t h e c y b e r –
a t t a c k i n W e b S e r v i c e s w i l l b e s m a l l e r t h a n e x p e c t e d , d e s p i t e l o w e r -t h a n -e x p e c t e d f o r e c a s t i n G a m i n g d e r i v e d f r o m r e v i s e d f o r e c a s t a n d
r e s c h e d u l in g o f r e l e a s e t i m i n g o f s o m e t i t l e s
• O p e r a t i n g p r o f i t w a s r e v i s e d u p w a r d l y d u e t o t h e f a c t o r s a b o v e , a l t h o u g h i n c r e a s e i n s o m e e x p e n s e s a r e e x p e c t e d s u c h a s t e m p o r a r y p e r s o n n e l
e x p e n s e a n d p r o m o t i o n e x p e n s e i n P u b l i c a t i o n / I P C r e a t i o n , a s w e l l a s e x p e n s e i n A n i m a t i o n a n d G a m i n g
Causes of Change to FY2024 Full -Year Net Sales and Operating Prof it Forecasts
(vs Previous forecasts)
Initial
forecast
271,300
Net Sales Operating Profit
Web
Services
Revise up by 0.4 billion yen
from the previous forecast
Animation/
Film Gaming
Education/
EdTech
Publication/
IP Creation
±0
Previous
Forecast
271,300
Others
Revised
Forecast
271,700
Corporate/
Eliminations

Initial
forecast
16,500
Web
Services
Animation/
Film Gaming
Education/
EdTech
Publication/
IP Creation
Previous
Forecast
15,600
Others Revised
Forecast
16,300
Corporate/
Eliminations
Revise up by 0.7 billion yen
from the previous forecast
(Unit: million yen)

8
Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2025
(Unit: Million JPY)
Results for the
fiscal year ended
March 31, 2024
Previous
forecasts* for the
fiscal year ending
March 31, 2025
Revised forecasts
for the fiscal year
ending March 31,
2025
Year on year
（ changed amount ）
Previous vs.
revised
forecast s
Net sales 258,109 271,300 271,700 +13,590 (+5.3 ％ ) +400
Operating profit 18,454 15,600 16,300 -2,154 (-11.7 ％ ) +700
Ordinary profit 20,236 17,900 16,200 -4,036 (-19.9 ％ ) -1,700
Profit attributable to
owners of parent 11,384 9,700 9,000 -2,384 (-20.9 ％ ) -700
EBITDA 25,374 23,500 24,100 -1,274 (-5.0 ％ ) +600
• N e t s a l e s : N e t s a l e s f r o m A n i m a t i o n / F i lm w i l l i n c r e a s e a n d t h e i m p a c t o f t h e d r o p i n p r o f i t d u e t o t h e W e b S e r v i c e s c y b e r -a t t a c k w i l l d e c r e a s e ,
d e s p i t e d o w n w a r d r e v i s i o n i n g a m i n g .
• O p e r a t i n g p r o f i t : T h o u g h a n i m a t i o n a n d g a m i n g o p e r a t i n g e x p e n s e s w i l l i n c r e a s e , t h e i m p a c t o f t h e d r o p i n p r o f i t d u e t o t h e W e b S e r v i c e s c y b e r –
a t t a c k w i l l d e c r e a s e .
• O r d i n a r y p r o f i t : O r d i n a r y p r o f i t a n d p r o f i t a t t r i b u t a b l e t o o w n e r s o f p a r e n t ( n e t p r o f i t ) a r e r e v i s e d d o w n w a r d d u e t o a f o r e i g n e x c h a n g e l o s s .
• N e t p r o f i t : E x t r a o r d in a r y l o s s e s d u e t o c y b e r -a t t a c k s w i l l b e l e s s t h a n e x p e c t e d , b u t w e r e v i s e d t h e f o r e c a s t d o w n wa r d d u e t o f o r e i g n e x c h a n g e
l o s s e s .
* Announced on August 14 , 202 4 EBITDA is the total of operating profit, depreciation and amortization of goodwill.

9
Net Sales and Operating Prof it Forecasts by Business Segment for the Fiscal Year
Ending March 31, 2025
(Unit: Million yen)
Results for the
fiscal year ended
March 31, 2024
Previous
forecasts * for
the fiscal year
ending March 31,
2025
Revised
forecasts for the
fiscal year
ending March 31,
2025
Year on year
(Changed
amount)
Previous vs.
revised
forecast s
Assumptions of the revised forecasts
Publication/
IP Creation
Net sales 141,967 155,000 155,000 +9.2%
(+13,032) ±0 • The impact from the cyber -attack on domestic paper -based books has
occurred largely in line with expectations
• In addition to increased promotional costs to recover from the above
situation, performance of the international paper -based books is
expected to fall below the previous forecast
Operating
profit 10,360 13,100 12,400 +19.7 %
(+2,039 ) -700
Animation/
Film
Net sales 46,060 46,800 49,000 +6.4%
(+2,939) +2,200 • Sales are higher than expected mainly due to strong performance in the
first half
• Due to delays in broadcast and release dates in animation and film titles
and increased promotional costs for Animation, operating profit will be
lower than expected
Operating
profit 4,574 4,900 4,700 +2.7%
(+125) -200
Gaming
Net sales 25,351 29,600 27,500 +8.5%
(+2,148) -2,100
• Sales will be lower than expected due to forecast revisions and release
delays in some titles, despite ELDEN RING DLC contributing significantly
to domestic and international sales
• In addition to the fact that this fiscal year’s plan is heavily weighted
toward the first half, stock option expenses at FromSoftware from this
fiscal year, and write -down has pushed operating profit down
Operating
profit 7,950 5,700 5,600 -29.6%
(-2,350) -100
Web Services
Net sales 21,399 17,500 18,000 -15.9%
(-3,399) +500 • As the number of premium members in niconico -related businesses has
not decreased as much as expected, sales and operating profit will be
higher than expected
• lower sales due to the cancellation of some events in the Live business is
expected
Operating
profit 362 -3,700 -1,600 –
(-1,962) +2,100
Education/
EdTech
Net sales 13,390 15,100 15,000 +12.0%
(+1,609) -100 • The number of students in courses for working adults at Vantan is
slightly below expectations
• In the second half, increased investments will be made to increase the
number of students from the next year and beyond Operating
profit 1,727 2,100 2,000 +15.7%
(+272) -100
Others
Net sales 20,298 19,100 18,300 -9.8 %
(-1,998 ) -800 • Due to the cyber -attacks, inter -segment internal transactions were
reduced at a functional subsidiary responsible for DX within the Group
and sales and operating profit were revised downward
• Increased sales and operating profit in the MD business, and a continued
reduction in losses in the commercial facility business are expected
Operating
profit -4,399 -3,200 -3,900 –
(+499) -700
Corporate/
Eliminations
Net sales -10,358 -11,800 -11,100 –
(-741) +700
— Operating
profit -2,120 -3,300 -2,900 –
(-779 ) +400
* Announced on August 14 , 202 4

Consolidated Earnings Results for the 2 nd Quarter of the
Fiscal Year Ending March 31, 2025

11
Summary of Consolidated Earnings Results for the 2nd Quarter of
the Fiscal Year Ending March 31, 2025
• First half: net sales +9.8 % , operating profit +23.5 %
The growth of major businesses made it possible to absorb the negative impacts on sales and profit
due to the cyber -attack and we achieved significant increase in sales and profit.
➢ In Publication /IP Creation, the number of new IPs, which is the source of the media mix, increased (+1.0%). The impact of the
cyberattack in domestic paper -based books was absorbed by growth in e -books, international paper -based books and rights -licensing
sales. As a result both sales and operating profit increased for the segment.
➢ In Animation, progress is being made at a steady pace exceeding the previous year when record performance was achieved. In Film ,
rights -licensing sales for streaming has also performed well .
➢ In the Gam ing segment, domestic and international revenue from ELDEN RING DLC drove high growth in the segment overall.
➢ In Web Services, despite the negative impact on sales and operating profit from the cyber -attack in June through August, as of t he
end of September, the impact decreasing the number of subscribers is smaller than previously expected.
➢ In the Education /EdTech segment, both sales and operating profit increased against a backdrop of steadily increasing student
numbers, including a new school expected to generate synergy with the Group’s businesses.
• 2nd Quarter (Jul. -Sep.) : net sales +7.8%, operating profit -13.9 %
➢ The impact of the cyber -attack in 2Q caused a 4. 9 billion yen sales decline and a 2.75 billion yen drop in operating profit, the largest
such drops on a quarterly basis. The overall operating profit declined.
The recovery of our business operations has progressed smoothly. In Publication /IP Creation, shipment volume for existing
publications had recovered to normal levels from August onwards, and W eb Services were also largely restored in September.
➢ In the Animation /Film , Gam ing and Education /EdTech segments, performance was strong with the same factors as the year -to -date
results, and sales and operating profit continued to increase. This partially offset the impact from the above cyber -attack.
➢ Due to foreign exchange losses (approx. -2.5 billion yen), ordinary profit and net profit saw larger decreases.

12
Consolidated Earnings Results for the 2 nd Quarter of the Fiscal Year Ending March 31,
2025
EBITDA is the total of operating profit, depreciation and amortization of goodwill.(Unit: Million JPY) Apr.-Sep. 2023
Results
Apr.-Sep. 2024
Results
Year-over-year
(changed amount)
Jul.-Sep. 2023
Results
Jul.-Sep. 2024
Results
Year on year
(changed amount)
+9.8% +7.8%
(+12,112) (+5,087)
+23.5% -13.9%
(+2,022) (-739)
└ Operating margin 6.9% 7.8% +0.9pt 8.2% 6.5% -1.6pt
+4.1% -37.0%
(+382) (-1,215)
-25.0% –
(-1,029) (-641)
+23.4% -5.9%
(+2,711) (-406)
282 -358
EBITDA 11,595 14,307 6,922 6,515
Ordinary profit 9,389 9,771 3,287 2,072
Profit attributable to
owners of parent 4,125 3,096
Net sales 124,207 136,320 65,372 70,459
Operating profit 8,604 10,626 5,336 4,597

13
Net Sales and Operating Prof it by Business Segment(Unit: Million JPY) Apr.-Sep. 2023
Results
Apr.-Sep. 2024
Results
Jul.-Sep. 2023
Results
Jul.-Sep. 2024
Results
Net sales 66,312 72,473 +9.3% (+6,160) 33,931 36,654 +8.0% (+2,723)
Operating profit 3,255 4,357 +33.8% (+1,101) 2,226 1,329 -40.3% (-897)
Net sales 22,032 26,431 +20.0% (+4,398) 11,368 14,406 +26.7% (+3,037)
Operating profit 2,504 3,640 +45.4% (+1,136) 1,007 1,697 +68.5% (+690)
Net sales 13,670 18,149 +32.8% (+4,479) 9,362 10,385 +10.9% (+1,022)
Operating profit 4,028 6,072 +50.8% (+2,044) 2,871 3,666 +27.7% (+794)
Net sales 11,000 8,329 -24.3% (-2,671) 5,573 3,603 -35.4% (-1,970)
Operating profit 648 -1,007 – (-1,656) 542 -610 – (-1,152)
Net sales 6,702 7,658 +14.3% (+955) 3,171 3,683 +16.1% (+512)
Operating profit 1,167 1,447 +24.0% (+280) 398 615 +54.2% (+216)
Net sales 9,393 7,783 -17.1% (-1,609) 4,454 3,847 -13.6% (-606)
Operating profit -1,925 -2,422 – (-497) -1,061 -1,443 – (-381)
Net sales -4,905 -4,506 – (+399) -2,489 -2,121 – (+368)
Operating profit -1,074 -1,460 – (-386) -649 -657 – (-8)
Corporate/
Eliminations
Education/EdTech
Others
Gaming
Web services
Animation/Film
Year-over-year
(changed amount)
Year on year
(changed amount)
Publication/
IP Creation

14
66,312
72,473
33,931
36,654
3,255
4,357
2,226
1,329
0
1,500
3,000
4,500
6,000
7,500
0
15,000
30,000
45,000
60,000
75,000
FY2023 FY2024 FY2023 FY2024
Business Overview – Publication /IP Creation Segment
• For domestic paper -based books, sales declined due to reduced shipments of existing publications due to
the cyber -attacks. Shipping volume of existing publications from August onwards recovered strongly and
increased beyond normal levels. In 2Q sales turned upward
• E-books have experienced strong growth. In 2Q, sales grew at +5.0% as expected. Increase of 7.6% even
when excluding the impact of the changes of revenue recognition timing for domestic sales at store of
other companies.
• For international paper -based books, sales increased not only YTD but also in 2Q (+5.4%). Asia surpassed
the Americas in terms of the share of sales by region, driving the overall increase in sales.
• Sales from rights -licensing sales also increased. Particularly in 2Q, sales increased significantly (+26.3%)
due in part to contributions from gaming machines
Sales: YTD +9.3% / +6,160 M (2Q +8.0% / +2,723 M)
Factors for Increase /Decrease in the First Half
Operating profit : -21.3 % / -2,795M (Q4 +44.0% / +1,436M)
• E-books and rights -licensing sales drove the increase in operating profit. In 2Q, operating profit declined,
in part due to a temporary increase in personnel expenses.
Operating profit: YTD +33.8% / +1,101 M (2Q -40.3% / -897 M)
(Unit: Million JPY)
Domestic paper -based
books/information
media
YoY -6.4%
Composition ratio: 26%
E-books
YoY +16.1%
Composition ratio:
43%
International
paper -based books
YoY +15.0%
Composition ratio:
11 %
Rights -licensing
YoY +8.7%
Composition ratio:
10%
Other
subsidiaries, etc.
YoY + 29.8 %
Composition ratio:
10%
Future outlook
• In the second half, we will work to increase the number of new IPs and enhance sales measures in the
domestic paper -based books and e -books areas to recover from the effects of the cyber -attacks.
International paper -based books are also expected to grow YoY, especially in Asia.
• In the medium – to long -term, a further increase in the number of new IPs is expected as a result of human
resource s investments.
W e aim for solid business expansion in the segment overall, through improvement of return rates due to
the digital manufacturing and logistics facility in domestic paper -based books, growth of e -books surpassing
the market, gains due to an expanded operating regions and an increased number of published titles in
international paper -based books, and growth of rights -licensing sales.
Net sales Operating profit
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit

15
Business Overview – Publication /IP Creation Segment
(Year to date: Major Factors for YoY Profit Change)
◆ Pu 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 o p e ra t i n g p r o f i t : Yo Y + 3 3 . 8 % / + 1 , 1 0 1 M
FY23 1 -2Q
Operating profit
KADOKAWA non -consolidated
Domestic paper -based books/
information media International
paper -based books
FY24 1 -2Q
Operating profit
Other expenses
• Office relocation -related expenses in
1Q of the previous fiscal year were a
factor in the higher profit.
• Strong expansion was achieved,
due in part to the effects of the
changes to the timing of the
recognition of sales.
Main domestic
Group companies
(Media business)
• Profit increased mainly
because of steady
growth in Asia.
• Impact from the ongoing
contraction of the magazine
business
• Profit decreased due to the
impact of the cyber -attack.
• The impact of the increased
material costs remains limited.
• In 2Q, cumulative total
profit turned upward.
3,255
million yen
4,357
million yen
Rights -licensing
• The majority of incremental investments is increased provision
for bonuses in 2Q. Investment in human resources, mainly
editors, increased for medium – to long -term growth.
• Investment in the comic book genre also increased year on year.
• Investment in digital manufacturing plants and new logistics
facilities decreased year on year.
E-books
Investment expenses

16
Business Overview – Publication /IP Creation Segment
( 2Q : Major Factors for YoY Profit Change)
◆ Pu 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 o p e ra t i n g p r o f i t : Yo Y -4 0 . 3 % / -8 9 7 M
FY23 2Q
Operating profit
FY24 2Q
Operating profit
2,226
million yen
1,329
million yen
KADOKAWA non -consolidated
Domestic paper -based books/
information media
International
paper -based books
Other expenses
• In 2Q there were events such
as increased promotional
expenses to enable the
Company to recover from the
impact of cyber -attacks.
• Profit steadily increased
amid an increase in
allocation expenses and
reward money to other
companies’ stores among
other trends.
Main domestic
Group companies
(Media business)
• Profit decreased for reasons
such as the increase in expenses
resulting from the inventory
devaluation in the Americas ,
despite steady growth in Asia.
• Impact from the ongoing
contraction of the magazine
business
• Profit decreased due to the
impact of the cyber -attack.
• The impact of the increased
material costs remains limited.
• Solid growth in 2Q
Rights -licensing
• The majority of incremental investments is increased provision
for bonuses in 2Q . Investment in human resources, mainly
editors, increased for medium -to long -term growth.
• Investment in the comic book genre also increased year on year.
• Investment in digital manufacturing plants and new logistics
facilities decreased year on year.
Investment
expenses
E-books

17
Business Overview – Animation /Film Segment
• In Animation, powerful growth continued, driven by rights -licensing sales from popular series, both for
domestic and international streaming, as well as for games and merchandise. In 2Q, further growth was
achieved (+35.7%) , surpassing 1Q (+10.5%) mainly due to the second season of 【Oshi no Ko 】and
performance from Alya Sometimes Hides Her Feelings in Russian ,OVERLORD: The Sacred Kingdom , and
others.
• In Film , sales increased both in the first half and 2Q (+5.3%) , in part due to contributions from rights –
licensing sales for streaming of theatrical titles in the previous fiscal year .
Net sales: YTD +19.2 % / +4,398M (2Q +25.3 % / +3,037M)
• Due to the sales increas e as mentioned above , operating profit increased in both Animation and Film .
Animation
YoY +23.6 %
Composition ratio: 73%
Film
YoY + 11.5 %
Composition ratio: 27%
Operating profit: YTD +45.4 % / -1,136M (2Q +68.5% / +690M)
22,032
26,431
11,368
14,406 2,504
3,640
1,007
1,697
0
1,000
2,000
3,000
4,000
5,000
0
6,000
12,000
18,000
24,000
30,000
FY2023 FY2024 FY2023 FY2024
■ Net sales ■ Operating profit
Net sales Operating profit
• In the second half, the multiple new animations of popular series such as Re:Zero − Starting Life in
Another World and My Happy Marriage are planned to be broadcast, but the number of titles aired will
decrease YoY. In Film, we expect a reactionary decrease from the previous year when multiple theatrical
titles performed well.
• Towards medium to long term growth, in Animation, efforts to bring production studios in -house to
improve quality and increase the number of productions are making steady progress ( Doga Kobo joined
the Kadokawa Group). In Film, we will strategically shift to titles that have the potential to be major hits.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
(Unit: Million JPY)
Factors for Increase /Decrease in the First Half
Future outlook

18
Business Overview – Gaming Segment
13,670
18,149
9,362
10,385 4,028
6,072
2,871
3,666
0
2,000
4,000
6,000
8,000
0
5,000
10,000
15,000
20,000
FY2023 FY2024 FY2023 FY2024
■ Net sales ■ Operating profit
Net sales: YTD +32.8 % / +4,479M (2Q +10.9 % / +1,022M)
• As a result of sales increase as mentioned above, operating profit increased both YTD and in 2Q.
• In addition to stock option expenses for FromSoftware from this fiscal year , in 2Q a write -down was
recorded for mobile games (total of around 1.7 billion yen)
New titles
for consoles and PCs
YoY -52.8%
Composition ratio: 17%
Repeat sales
for consoles and PCs
YoY +20.3 %
Composition ratio: 11 %
Royalties
for consoles and PCs
YoY + 340.5 %
Composition ratio: 47%
Others
YoY + 29.4%
Composition ratio:
25%
Operating profit: YTD +50.8% / +2,044 M (2Q +27.7% / +794 M)
• We will strive to maximize the LTV of popular game titles such as ELDEN RING .
• For medium – to long -term growth, the development pipeline is being expanded
• We are developing a structure to expand the scope of in -house publishing for console and PC games
• For mobile games, we are pursuing new development studios to increase the number of titles and
improve quality.
• Sales increased in the segment overall both YTD and in 2Q, with the significant contribution of original
ELDEN RING and its DLC .
• For DLC sales, in addition to domestic sales, international sales regarding actual figures based on June
shipments and estimates based on July -to -September shipments were recorded in 2Q, driving increased
sales in the “Royalties” category mentioned above
• Due to DLC sales, the popularity of the original ELDEN RING accelerated once more, contributing to
increased “Repeat” sales
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
Net sales Operating profit
(Unit: Million JPY)
Factors for Increase /Decrease in the First Half
Future outlook

19
Business Overview – Web Services Segment
11,000
8,329
5,573
3,603
648
-1,007
542
-610
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
FY2023 FY2024 FY2023 FY2024
■ Net sales ■ Operating profit
• In niconico -related business, sales significantly declined both YTD and in 2Q due to the cyber -attacks.
• There were lost sales from June to August when service s were suspended. From September sales were
posted largely as normal.
• While the number of premium membership declined, the impact of the decline in the number of subscribers
due to the cyber -attack incident was below the expected level and was minimal.
Net sales: YTD -24.3% / -2,671M ( Q2 -35.4 % / -1,970M)
• The above impact reducing sales was the main factor being lower operating profit both YTD and in 2Q
Niconico -related
YoY -30.7%
Composition ratio : 67 %
Live
YoY -2.8%
Composition ratio: 21 %
Mobile
YoY -13.3%
Composition ratio: 13%
Operating profit: YTD – / -1,656M (2Q -/ +1,152M)
• In the Web Services, profit level for the full year will be about 1.5 billion yen at its actual value, excluding
temporary factors such as IT infrastructure investment and the impact from the cyber -attacks. We will
redesign our strategies to resume growth in the future.
• We consider organizational restructuring to speed up service development.
• We actively implement programs and events, etc. to increase user activity.
• The expenses from infrastructure investments will peak in this fiscal year, with costs expected to decline by
over 500 million yen next fiscal year.
• In the medium – to long -term, we will promote the global monetizing of music and other IPs originating
with niconico creators, and work to maximize rights -licensing sales.
• Leveraging the IT engineering capabilities cultivated in this business, we will aim to further accelerate DX
of the Group .
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
Operating profit (Unit: Million JPY)
Factors for Increase /Decrease in the First Half
Future outlook
Net sales

20
Business Overview – Education /EdTech Segment
• The number of students increased with a high growth rate for Vantan and N/S High School, resulting in
increased sales both YTD and in 2Q
• At Vantan, new schools such as “KADOKAWA SCHOOL OF ANIME ” and new sites drove 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
Net sales: YTD +14.3% / +955M (2Q +16.1 % / +512M)
* Preparations for school opening underway
• As a result of sales increase as mentioned above , operating profit increased both YTD and in 2Q.
Vantan
YoY +10 .6%
Composition ratio: 71%
N/S high school business
YoY + 24 .2%
Composition ratio: 29%
Operating profit: YTD +24.0 % / +280M (2Q +54.2% / +216M)
6,702
7,658
3,171
3,683
1,167
1,447
398
615
0
1,000
2,000
3,000
4,000
0
2,000
4,000
6,000
8,000
FY2023 FY2024 FY2023 FY2024
■ Net sales ■ Operating profit
• In the second half, we expect an increase in investment to increase student enrollment in and after the
next fiscal year. At Vantan and N/S High School, the trend of increasing student enrollments and
increased sales will continue.
• In the medium to long term, we aim to continue the high rate of growth by expand ing into new areas
and opening new schools.
• At Vantan, we will expand the regions where popular schools such as “KADOKAWA SCHOOL OF ANIME ” are
offered. We will also consider establishing new courses.
• In April 2025, we will newly open “R High School*”. Student enrollments are also expected to increase in
the N/S high school business from the next fiscal year and beyond, in part due to ongoing increases in new
campuses for in -person courses.
• “ZEN University” is scheduled to open in April 2025, and we expect enrollments from N/S High School
students. Cooperation with Vantan is expected to contribute to increasing the number of students.
• We will cultivate creators in -house as an essential base of talent for the content business. We will aim to
strengthen the foundations for sustainable growth.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
Net sales Operating profit
(Unit: Million JPY)
Factors for Increase /Decrease in the First Half
Future outlook

21
Business Overview – Others Segment
• The MD business has remained flat. In 2Q international merchandise sales grew, leading to increased sales
(2Q +11.5%)
• Sales declined in the commercial facility business. IP events that have also been held outside Sakura Town
have performed well .
• In other business es , sales declined due to factors such as the withdraw al from purchase and sales business
of some items considering its profitability, and a decline in inter -segment internal transactions due to the
impact of the cyber -attacks at functional subsidiar y promoting in -Group DX (no consolidated impact)
Net sales: YTD -17.1% / -1,609M ( 2Q -13.6 % / -606M)
• In MD business, operating profit declined both YTD and in 2Q due to the factors mentioned above for 2Q
• In the commercial facility business, the deficit narrowed due to the effect of lower depreciation expenses
resulting from the impairment in the previous year and ongoing cost control.
• In other business es , operating profit declined due to factors reducing sales at the functional subsidiaries
mentioned above (approx. – 600 million yen) . This had a big impact and operating profit declined in the
segment as a whole.
MD
YoY -1.3%
Composition ratio: 36%
Commercial facility
YoY -4.5%
Composition ratio: 22%
Others
YoY -31.3%
Composition ratio: 42%
Operating profit: YTD – / -497M (2Q – / -381M)
9,393
7,783
4,454
3,847
-1,925 -2,422
-1,061
-1,443
-2,500
0
2,500
5,000
7,500
10,000
-2,500
0
2,500
5,000
7,500
10,000
FY2023 FY2024 FY2023 FY2024
■ Net sales ■ Operating profit
• In MD business, we will aim to strengthen international sales channels from the second half onwards in
addition to increasing the product lineup. As a new pillar of the IP business, we will work to expand the
scale of business in the medium -to long -term.
• In the commercial facility business, we will aim to improve profitability by enhancing the ability to
attract visitors through site -wide measures across Sakura Town, and through the nationwide rollout of
IP event planning. Ongoing cost controls will be also implemented.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
Net sales Operating profit
(Unit: Million JPY)
Factors for Increase /Decrease in the First Half
Future outlook

Progress on the Mid – term Management Plan

23
Growth Story Toward Achieving the Mid -term Management Plan (Repost)
IP creation Maximizing
Intellectual Properties’ LTV
Human Resources (Human Capital),
Creativity and Technology
Expanded
number of
published
IPs
Lineup
of large
animation
IPs
Expansion
of the game
pipeline
Expansion
of
internationa l
bases
Development
of globally
integrated
media mix
Increased
d istribution o f
IP and relate d
products
Accelerate the
Global Media Mix
with Technology.
Achieve
sustainable growth.

24
IP Creation: Publication
Publication IP Creation Plan E -book and Paper -based Book Initiatives
Strengthening digital series
Publication Manufacturing and Distribution DX
Project
(Unit: number of IPs)
⚫ Due to the system outage, there were some delays such as among
born -digital titles, but publication IP creation is proceeding
steadily toward the FY202 7 target of over 7,000 IP s
⚫ Ratio of Publication IP Genre Expansion
(FY202 0 Results → FY20 24 Forecast)
Overall: 116.5% Comics: 146.9% Born -digital: 148.9%
FY2020 FY2021 FY2022 FY2023 FY2024 FY2027
5,300
(Result)
5,300
(Result)
5,600
(Result)
7,000+
(Plan)
(Unit: number of IPs)
– 5,900
(Result)
6,250
(Forecast )
⚫ A dedicated app for the Kadokomi service
that distributes popular KADOKAWA comic
titles was released this year
⚫ 364 titles under 39 labels are available with
daily updates, including Kadokomi’s original
titles started to be serialized
(As of September 30, 2024 )
⚫ From August 2024 KADOKAWA started
publishing Kadokomi’s original titles in book
form
(10 titles published in the first half of the fiscal
year ending March 31, 2025)
⚫ To make the paper -based book business
sustainable, we have been driving the
digital transformation of a three -fold
integration of sales, production and
logistics
(Return rate target for FY 20 27: 22.4%)
⚫ At the digital manufacturing facility that
entered full operation from 2020, the
digital manufacturing of comics is
achieved, a rarity in the world
(The photo to the left ）

25
13
7
19 19 18
13
17
20
13 17
7 9
5
3
5
0
5
10
15
20
25
30
35
40
45
50
FY2020
（Result ）
FY2021
（Result ）
FY2022
（Result ）
FY2023
（Result ）
FY2024
（Planned ）
Movie, OVA, etc.Titles with a single run broadcast on TV or on the InternetTitles with multiple runs and serialized titles broadcast on TV or on the Internet
IP Creation: Animation
Shifted to in -Group production of animation IP
New
Animation production studios in KADOKAWA Group
Toward a 5+1=6 company structure
Main titles:
【OSHI NO KO 】,
Alya Sometimes Hides
Her Feelings in Russian
Main titles:
Unnamed Memory,
Medalist
Main titles:
My Happy Marriage,
The Rising of The
Shield Hero
Production studio led
by Hiroyuki Seshita ,
one of Japan’s most
renowned 3DCG
animation directors
Production studio
directed by Koji Kajita ,
who has led numerous
titles to success
An experienced team,
highlighted by director
Tomoki Kyoda , has
been brought together
Joined the Group in 2019
Joined the Group in 2023
Established in 2018
Established in 2021
Established in 2024 Joined the Group in 2024
（Counted from the first season ）
⚫ Doga Kobo, Inc. has newly joined the Group as a subsidiary, and
progress has been made in shifting to in -house production,
aimed at maintaining and improving the quality of titles and
the number of titles produced
⚫ Through coordination and system standardization within the
Group, efforts are underway to streamline production, boost
human resource development and improve the work environment
Increased scale and longevity of animation IP
⚫ The scale of animated titles increased and their longevity
was extended because more titles with multiple runs and more
serialized titles were added
⚫ We meet a variety of needs related to creation while retaining
a diverse lineup
Changes in the number of animation IP titles
Re:ZERO – Starting Life in Another World – 2nd season
So I’m a Spider, So What?
The Eminence in Shadow
Delicious in Dungeon -1st season
【OSHI NO KO 】 -1st season
Main titles
(Equity -method affiliated company)

26
IP Creation: Games and Films
Expand the game development pipeline Improving profitability of films
6 Lying University Students :
scheduled for November
2024 nationwide release©2024 “6 Lying University Students” Film Partners
Fushigi Dagashiya Zenitendo :
scheduled for December
2024 nationwide release
Mieruko -chan :
scheduled for early
summer 2025 release
FromSoftware
Spike Chunsoft
Gotcha Gotcha
Games
ACQUIRE
KADOKAWA
Focus
on
Console
Titles
VIC GAME
STUDIOS
Focus
on
Mobile
Games
©2024 Netflix
©2024 映画「ふしぎ駄菓子屋 銭天堂」製作委員会 ©2025 「見える子ちゃん」製作委員会 └ FY2023 └ FY2024 ~
Master Detective Archives:RAIN CODE Plus
December 2023 ~Joined Group
ELDEN RING SHADOW OF THE ERDTREE ARMORED CORE VI FIRES OF RUBICON
Natsumon ! 20th Century Summer Vacation
RPG MAKER UNITE
RPG MAKER WITH
C.A.R.D.S. RPG: The Misty Battlefield
The Eminence in Shadow Master of Garden
Collaborative titles are under development
Mystery DungeonShiren the Wanderer 6 Toguro Island Exploration Chronicles
Re: Life Starting from Zero in Different World Witch’s Re:surrection
May 2024 ~Capital and business alliance(minority stake)
⚫ Achieving a structure where the Group is able to
constantly release new games by steadily expanding
the development and publishing pipeline
⚫ Aiming to continuously increase profitability by
planning productions that become big hits centered
on titles developed based on KADOKAWA’s own original
works
The streaming drama The Queen of
Villains , whose production was
handled by KADOKAWA , has earned
high praise
20
titles
in development
6
titles
in development

27
IP Creation — Discovering, Supporting and Developing Creators —
Our commitment in the Web Services business Our commitment
in the Education/EdTech business
⚫ Discover and produce gems through Niconico,Niconico
Chokaigi and VOCALOID collection
⚫ Support creators’ long -term activities and contribute
to the growth of the Group’s business through the
creation of new IPs
A series of collaborations
between VOCALOID producers/
singers and KADOKAWA
animation
doriko (vocaloid producer) and HaNaTan (singer) are involved in the making of arc – en -ciel , the opening song for The Magical Revolution of the Reincarnated Princess and the Genius Young Lady (broadcast in the period starting in January 2023).
©2023 Piero Karasu, Yuri Kisaragi / KADOKAWA / TenTen Production Committee
Asia Creators Cross, a
Niconico Chokaigi program
for supporting creators, starts
Niconico
Cho kaigi
Anime Festival
Asia (AFA)
(Hosted by SOZO)
Creators who performed or exhibited at Niconico Chokaigi 2025, the first program, are entitled to perform or exhibit at AFA which is the largest animation event in Southeast Asia.
⚫ Develop and produce many different human
resources including people with creative skills through
highly specialized educational programs
⚫ Develop the next generation of creators with practical
curricula maximizing the Group’s knowledge and expertise
In the N High School Group,
extracurricular lessons provided
by professionals, available both
online and face -to -face
The lecture video by celebrated voice actors and actresses is popular. The extracurricular classes cover many different subjects other than creation -related subject, such as preparation for university entrance exams and programming.
KADOKAWA School powered
by Vantan is also well -received
Founded in April 2024, KADOKAWA School has been well -received and a school will open in Nagoya in April 2025, following on the schools in Tokyo and Osaka.

28
Maximization of LTV through deployment of Media Mix
Progress on Scaling Up IPs Initiatives to Extend the Life of IPs
FY2019 FY2020 FY2021 FY2022 FY2023
8 9 11 13
16
Change in Number of Major IPs
Number of IPs contributing over 1 billion yen
a year to KADOKAWA (non -consolidated) net sales
Original comic
©Mine Yoshizaki
Series length
1999 to present
©2010 Mine Yoshizaki / Kadokawa Publishing, Kadokawa Pictures, Sunrise, NTT Docomo, TV TOKYO, NAS
Airing of animated TV
series (2004 to 2011)
and release of theatrical
animated features (5
titles)
Events
Launched in 2004
Many exhibitions and
collaboration events
have been implemented
up to this day
Distribution period
2024~
⚫ Steady progress has been made scaling up IPs
thanks to the growing popularity of titles worldwide
⚫ The Group will make united efforts to push a global
media mix to ensure that each title can reach even more
fans around the world
⚫ Working to extend the life of IPs through a diverse
media mix
Example: Sgt. Frog
(25th anniversary since launch of the series)
Animated adaptation
Vertically
scrolling comic
adaptation
©Mine Yoshizaki

29
Example of Re :ZERO -Starting Life in Another World (Re :ZERO ): The web -published novel was adapted into a light novel, and then
expanded into various media formats including comics, animation, games and merchandise . The synergistic effects of this media mix
strategy made it an extremely popular title, and even now in 2024 when it observed its 10 th anniversary, it continues to earn new fans,
establishing a model for long -term development (maximizing LTV)
Maximizing LTV: Rolling Out a Global Media Mix Strategy to Maximize IP Value
©Tappei Nagatsuki,KADOKAWA /Re:ZERO1 PARTNERS ©Tappei Nagatsuki,KADOKAWA /Re:ZERO2 PARTNERS ©Tappei Nagatsuki,KADOKAWA /Re:ZERO3 PARTNERS ©TN,K,Re:ZEROP ©Tappei Nagatsuki,KADOKAWA /Re:ZERO2 PARTNERS Licensed to and Published by Spike Chunsoft Co., Ltd. and Spike Chunsoft , Inc. ©Tappei Nagatsuki ©KADOKAWA/Akatsuki Inc. ©TN,K,Re:ZEROP ©DAITO GIKEN,INC.

30
FY2022 FY2023 FY2024 FY2027
2,600
(Result)
3,000
(Result)
3,500
(Forecast)
5,000~
6,000
(Plan)
Maximizing LTV: I nternational Business
Increase in the number of
titles published by
international subsidiaries
Establishment of international subsidiaries to increase the number of IPs
Expand the number of titles
published by First Page Pro and
KADOKAWA AMARIN annually in
Thailand from 480 in 2024 to
1,000 in 2027
In addition to Japanese
novels and non -fiction books,
the translation and publishing
of light novels has begun.
There is also a focus on the
development of IPs
originating in South Korea Steady increase in sales
channels along with number of
titles published, driven by setup
of corners in Indonesia’s largest
book store and the launch of an
e-commerce store
Translation and publishing of comics
and light novels originating in Japan
and South Korea to cater to the
global French -speaking market
Strengthening the Global Media Mix
A pop -up store for the popular
IP Siamese Cat Azuki -san in
China was operated, and
involved games and Vtuber
collaborations
A vertical scrolling title based on ELDEN
RING (game) has been produced by
KADOKAWA QINGYU (SHANGHAI)
CULTURE & CREATION, with the series
launching globally
Animated adaptation of Lawak
Kampus , an original IP from
KADOKAWA GEMPAK STARZ
(Malaysia). (Subscribers to the
YouTube channel reached 1.9
million)
ELDEN RING Become Lord©KADOKAWA QINGYU (Shanghai) Culture & Creation Co., Ltd. ©Bandai Namco Entertainment Inc./ ©2024 FromSoftware,Inc .
LK School Daze©2023 Kadokawa Gempak Starz SdnBhdand Lil Critter Workshop SdnBhd. All Rights Reserved.
The expansion of Manga Spot is stepped
up in North America. Manga Spot is our
chain of company -operated stores
specialized in Japanese manga. Four
Manga Spot stores will open before the
end of 2024, including the first shop
opened in New York City. We will seek to
open more stores
Lee Mi -ye Break Room©lee mi ye
FIRST PAGE
Thailand -based company that joined the Group in January 2024
O’FAN HOUSE
South Korean -based company established in May 2024
PHOENIX
GRAMEDIA
Indonesia -based company established in April 2024
VEGA
France -based company established in October 2024
(Unit: number of titles)
*Number of new titles published by international subsidiariesWhen the same title is launched in a different country or region, it is counted as “2 “ If the same title gets a release of both paper -based and electronic versions, it is counted as “1”
‒

31
Revitalize d the
organization
Number of employees who
have applied
FY2023: 128
Diversity and Inclusion Enhance personnel systems that
improve motivation
Win Graffiti, which develops
“Hakoniwa Tamago (eggs)” joined
the KADOKAWA Group
Strengthening Human Resource Development
in Japan and Abroad
Enhancing hiring activities
Human Capital Strategy
◼ In -house free agent system
Ability to transfer to a desired department or different
job type
Around 5% of all
KADOKAWA employees
(non -consolidated)
utilize the system
Example: Achievement
of virtual orchestra
development project
for classical music
Enhancing systems to support each employee’s career
⚫ In April 2024, Win Graffiti Co., Ltd. , which is
involved in welfare businesses such as continuous
employment support and an egg production
business, joined the KADOKAWA Group
⚫ The company achieves sustainable
employment for people with disabilities by
conducting activities that can be viable as
businesses through the sale of high -quality eggs
such as “ Hakoniwa Tamago Akane” produced at
Hakoniwa Farm, which they operate
⚫ Strengthening mid -career hiring in various ways
including a referral system based on employee
referrals
⚫ Enhanced worldwide hiring activities and internships
⚫ Respecting employees’ intentions and placing the right
people in the right places
⚫ Contribute to business growth by encouraging each
employee to demonstrate their creativity
◼ Incentive system for obtaining public
qualifications
The system enables self -directed career development through reskilling
◼ Side job system
Expanding work options and supporting voluntary
career development
◼ Project Open Call
Employees themselves propose challenging, medium –
to long -term and cross -departmental projects

Appendix

33
760
1,110
3,360
2,750
1,100
890
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1Q 2Q 3Q 4Q 1Q 2Q
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%
40% Return rate (right axis)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
0
10,000
20,000
30,000
40,000
50,000
1Q 2Q 3Q 4Q 1Q 2Q
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)
141,621
*Accumulated e -book titles include the number of distribution by chapter
36,654 YoY(+8.0%) ▼
（ Million JPY ） （Percentage)
25%YoY-2.4pt
YoY(+1.4%) ▼

34
116
223
510
308
38
149
127
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1Q 2Q 3Q 4Q 1Q 2Q
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
1,471
YoY-1.3 ％▼
Titles contributing to sales
（Titles ）
*Total of IPs including Group companies’ and born -digital titles in addition to KADOKAWA non -consolidated paper -based books
The Counterfeit’s Fateful
Encounter, Vol.3
My Love Story with
Yamada -kun at Lv999,
Vol.9 ©MASHIRO/COMICSMART INC.
Pan Dorobou , Vol.6
(C)Ichinose Kaoru 2024 （C)Sheena Saera 2024
(C)Iroto Tsumugi (C)Kori Hisakawa (C)Airumu / KADOKAWA CORPORATION
To Sir, Without Love:
I’m Divorcing You II

35
E -books /magazines
E -book Business
0
30,000
60,000
90,000
120,000
150,000
0
4,000
8,000
12,000
16,000
20,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2023 FY2024
Net sales of e-books/magazines (left axis)
Accumulated titles of ebooks (right axis)
141,621
Trend of net sales
0
200
400
600
800
1,000
1,200
1,400
1Q 2Q 3Q 4Q 1Q 2Q
FY2023 FY2024
Trend of international net sales
Net sales breakdown
(April to September)
Global usage situation (MPU)
Comic
77 %
Other
23 %
130
150
170
1Q 2Q 3Q 4Q 1Q 2Q
FY2023 FY2024
14,463 YoY+5.0 ％
(Million JPY) (Million JPY)
(Thousand people)
YoY+23.9 ％ ▼
YoY+1.8 ％▼
*Accumulated titles of ebooks include the number of distribution by chapter
*MPU (Monthly Paid User)

36
14 18
15 14
16
12
FY2023 FY2024
1Q 2Q 3Q 4Q
0
2,000
4,000
6,000
8,000
10,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2023 FY2024
Others (including production subsidiaries)
Domestic merchandising
Domestic streaming
International
Net sales of animation business
Animation /Film Segment
11,072
YoY+35.7 ％ ▼
Titles contributing to sales The number of
animation titles
TV/Web broadcasts
29
Theater
movies
3
57▼
Number of new titles
Breakdown by media in
Apr. to Sep.
*Number of titles including minor investment
(Million JPY)
13 ％
41 ％
17 ％
29 ％
©Hiroshi Noda, Takahiro Wakamatsu, Shogakukan /No Longer Allowed in Another World Partners
©Aka Akasaka x Mengo Yokoyari /Shueisha , “OSHI NO KO” Partners ©Sunsunsun,Momoco /KADOKAWA/ Alya -san Partners
©Kugane Maruyama,PUBLISHED BY KADOKAWA CORPORATION/ OVERLORD:The Sacred Kingdom Movie Partners
Alya Sometimes Hides Her
Feelings in Russian 【OSHI NO KO 】
OVERLORD:
The Sacred Kingdom
No Longer Allowed in
Another World

37
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
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 ）
YoY+54.3 ％ ▼
* 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.
20.0%
40.0%
60.0%
80.0%
0
15,000
30,000
45,000
FY2020 FY2021 FY2022 FY2023 FY2024
1-2Q
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

38
FY2024 YTD
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
0 1,000 2,000 3,000 4,000
【OSHI NO KO 】
Delicious in Dungeon
KONOSUBA: God’s Blessing on This Wonderful
World!
Overlord
Pan Dorobou
Alya Sometimes Hides Her Feelings in Russian
The Eminence in Shadow
Re:ZERO -Starting Life in Another World-
Bungo Stray Dogs
Classroom of the Elite
Publication/IP Creation Segment (Books and Magazines)
Publication/IP Creation Segment (Rights-licensing and others)
Animation/Film Segment
Gaming Segment, Others
Rank Title Name (Series) Year First
Aired
1 【OSHI NO KO 】 2023
2 Delicious in Dungeon 2023
3 KONOSUBA: God’s Blessing on This
Wonderful World! 2016
4 Overlord 2015
5 Alya Sometimes Hides Her Feelings in Russian 2024
6 Unnamed Memory 2024
7 The Eminence in Shadow 2022
8 Re:ZERO -Starting Life in Another World – 2016
9 Gods’ Games We Play 2024
10 Bungo Stray Dogs 2016
Rank Title Name (Series) Year First
Published
1 Delicious in Dungeon 2015
2 Pan Dorobou 2020
3 Mushoku Tensei: Jobless Reincarnation 2014
4 Sword Art Online 2009
5 Spice and Wolf 2006
6 The Irregular At Magic High School 2011
7 Rascal Does Not Dream 2014
8 Bungo Stray Dogs 2013
9 My Love Story with Yamada -kun at Lv999 2020
10 The Eminence in Shadow 2018

39
Books
Eagerly Awaited Upcoming Titles
Animation /Film
©Nagaru Tanigawa , Noizi Ito/KADOKAWA
(C)Mokumokuren (C) Kaoru Mori 2024
©MASHIRO/COMICSMART INC.
The bride’s stories,
Vol.15
The Summer Hikaru Died,
Vol.6
The Theater of
Haruhi Suzumiya
©Tappei Nagatsuki,KADOKAWA/ Re:ZERO3 PARTNERS ©Riichiro Inagaki, Ryoichi Ikegami/ Shogakukan /Anime Trillion Game Partners
© 2024 ”6 Lying University Students” Film Partners
Re:ZERO -Starting Life in
Another World -Season 3
©Akira Amano / SHUEISHA , Ron Kamonohashi’s Forbidden Deductions Partners
Ron Kamonohashi’s
Forbidden Deductions
2nd Season
TRILLION GAME
My Love Story with
Yamada -kun at Lv999,
Vol.10
6 Lying University
Students

40
Trend of sales of Gaming segment
Gaming Segment
Titles contributing
to sales
ELDEN RING ©Bandai Namco Entertainment Inc. / ©2022 FromSoftware, Inc.
Downloadable Content
“SHADOW OF THE ERDTREE”
for “ELDEN RING”
©Bandai Namco Entertainment Inc. / ©2024 FromSoftware, Inc.
FY2023 FY2024
1Q 2Q 3Q 4Q 1Q 2Q
Number of newly
released titles for
consoles and PCs
2 3 1 3 5 1
Total number of
copies sold
(million copies)
0.98 1.80 0.87 1.10 1.33 0.93
Eagerly awaited
upcoming titles
10,385 YoY+10.9 ％▼
0
3,000
6,000
9,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2023 FY2024
New Titles for consoles and PCs Repeat for consoles and PCs
Royalties for consoles and PCs Other
Kamaitachi no Yoru x3
©Spike Chunsoft /我孫子武丸 /田中啓文 /牧野修

41
Niconico -Related Business
Niconico user data Niconico Channel user data
Age
Niconico usage data
Regular members (Million) 101.64
Premium members (Million) 1.08
Number of channels 11,201
Number of channels with monthly fee 2,380
Dues -paied members (Million) 1.24
*As of September 30, 2024
2.7%
22.6% 36.2% 20.7% 11.9%
6.0%
0% 20% 40% 60% 80% 100%
10s 20s 30s 40s 50s Others
MAU
(Million)
DAU
(Million)
Logged In Unique Users
+ Unique Video Viewers
Not Logged In
Google Analytics -based
Unique Users
Niconico Chokaigi 2024
Visitors (Thousand) 12 5
Logged In Unique Users
niconico
*As of September 30, 2024
*As of September 30, 2024
* Usage for July -September 2024 cannot be disclosed because of difficulty in
calculating data due to the system failure.
ー
ー
ー
ー
ー
ー

42
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
FY2023 FY2024
(Students ) 30,648
Number of
enrolled students
(As of Sep. 2024) 8,688
Number of
enrolled students
(As of April 2024)
0
3,000
6,000
9,000
FY2021
April
FY2022
April
FY2023
April
FY2024
April
(Students )
YoY+17 ％▼
YoY+15 ％▼

43
Breakdown of International Net Sales by Segment
International Net Sales
Americas 58.6% 56.2 ％ 51.3 ％ 51.6% 58.4% 57.8 ％
Asia 32.6% 34.7 ％ 37.9 ％ 40.3% 32.8% 28.5 ％
Others 8.8% 9.1 ％ 10.8 ％ 8.1% 8.7% 13.7 ％
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.
251 244 175 398 217 852
4,683 5,356 5,178 4,985 5,867 5,813
3,471 3,008 3,076 3,452
4,343 4,753 1,611 1,613 1,949 1,308
2,065
7,193
0
5,000
10,000
15,000
20,000
FY2023 1Q 2Q 3Q 4Q FY2024 1Q 2Q
12,494
10,018 10,222 10,379 10,145
18,612
YoY
+82.1 ％

44
Capital Investment*
Capital Investment and Depreciation
Depreciation
3,128
1,789 1,668
5,824
3,218
6,730
0
5,000
10,000
FY2023 FY2024
1-2Q
FY2024
(Forecast)
8,399
■ Purchase of property, plant and equipment
■ Purchase of intangible assets
8,952
(Million JPY)
6,735
3,483
7,800
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
FY2023 FY2024
1-2Q
FY2024
(Forecast)
(Million JPY)
5,007
* “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).

45
FAQ
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 i n 1H o f t h e f i s c a l y e a r e n d i n g M a r c h 3 1 ,
2 0 2 5 . T h e i m p a c t i n 2Q w a s s m a l l e r t h a n t h a t i n 1Q .
Q01
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 ?
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 + 2 . 3 b i l l i o n J P Y ) w a s + 7 . 9 % i n t h e A p r i l t o
S e p t e m b e r p e r i o d . I n t h e J u l y t o S e p t e m b e r 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 . 9 b i l l i o n J P Y ) w a s + 6 . 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 S e p t e m b e r , a n d J u l y t o S e p t e m b e r 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
S e p t e m b e r w a s a b o u t + 0 . 7 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 + 4 . 7 % . I n t h e J u l y t o S e p t e m b e r
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 . 4 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
-4 . 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
S e p t e m b e r , a n d J u l y t o S e p t e m b e r 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 ?

46
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 4 . 3 % ( B O O K ☆ W A L K E R ) a n d 2 3 . 9 % ( 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 S e p t e m b e r . F r o m J u l y t o S e p t e m b e r , t h e r a t i o
o f s a l e s w a s 1 : 3 , 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 . 5 % a n d 8 . 8 % e a c h . T h e g r o w t h r a t e f o r s a l e s i n s t o r e s o f o t h e r
c o m p a n i e s i n c l u d e s t h e i m p a c t o f t h e c h a n g e i n s a l e s r e c o g n i t i o n t i m i n g d e s c r i b e d i n Q01 , a n d t h e g r o w t h r a t e e x c l u d i n g t h i s
i m p a c t i s + 1 2 . 0 % i n t h e A p r i l t o S e p t e m b e r p e r i o d .
Q04
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 S e p t e m b e r , a n d f r o m J u l y t o S e p t e m b e r , 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 8 % , 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 3 % , 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 2 % , 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 7 %
G r o w t h r a t e b y g e n r e : c o m i c s -1 1 % , 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 -1 % , l i g h t n o v e l s -1 0 % , p a p e r b a c k b o o k s + 2 % ,
c h i l d r e n ’ s b o o k s -6 % , m a g a z i n e s -6 % ( 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 .
Q05
A
F r o m A p r i l t o S e p t e m b e r , 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 ?
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 .
Q06
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 S e p t e m b e 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 e r s c o n s i s t e d o f 8 % 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 4 2 % i n t h e A n i m a t i o n / F i l m
S e g m e n t .
Q07
A
F r o m A p r i l t o S e p t e m b e r , 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 e r 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 lm S e g m e n t ?

47
FAQ
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 .
Q08
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 ?
D e p r e c i a t i o n o f t h e p r o j e c t i s e x p e c t e d t o b e 2 . 0 b i l l i o n y e n f o r t h e f i s c a l y e a r e n d i n g M a r c h 3 1 , 2 0 2 5 a n d 2 . 0 -2 . 2 b i l l i o n y e n
i n t h e f i s c a l y e a r e n d i n g M a r c h 3 1 , 2 0 2 6 a n d s u b s e q u e n t y e a r s . N o t e t h a t t h e s e m o n e t a r y f i g u r e s r e f l e c t t h e i m p a c t o f t h e
i m p a i r m e n t l o s s a s s o c i a t e d w i t h p a r t i a l b u s i n e s s r e s t r u c t u r i n g i n t h e c o m m e r c i al f a c i l i t y b u s i n e s s t h a t w a s c a r r i e d o u t i n t h e
f o u r t h q u a r t e r o f t h e y e a r e n d e d M a r c h 3 1 , 2 0 2 4 .
Q09
A
W h a t a r e T o k o r o z a w a p r o j e c t ‘ s d e p r e c i a t i o n f o r 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 5 a n d i n t h e f u t u r e ? ( D i g i t a l m a n u f a c t u r i n g
p l a n t s , n e w l o g i s t i c s f a c i l i t i e s , c o m m e r c i al f a c i l i t i e s , o f f i c e e t c . )

©KADOKAWA CORPORATION 2024
• 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 .