Kadokawa Corp FY2025 Q2 Earnings Release

Earnings Results
The 2 nd Quarter Ended September 30, 2025 ｜ 2025.11.6

Contents
1. Summar y of Consolidated Earnings Results for the
2 nd Quar ter and Revision of Consolidated Earnings
Forecasts for the Fiscal Year Ending March 31,
202 6 P3
2. Consolidated Earnings Results
for the 2 nd Quar ter of the Fiscal Year Ending March
31, 20 26 (by Segment) P10
3. Appendix P20

Summary of Consolidated Earnings Results for the 2 nd Quarter
and Revision of Consolidated Earnings Forecasts for the Fiscal
Year Ending March 31, 2026

4
Consolidated Earnings Results for the 2 nd Quarter
of the Fiscal Year Ending March 31, 2026(Unit: Million JPY) Apr.-Sep. 2024
Results
Apr.-Sep. 2025
Results
Year on year
(changed amount)
Jul.-Sep. 2024
Results
Jul.-Sep. 2025
Results
Year on year
(changed amount)
-1.8% -1.9%
(-2,387) (-1,371)
-47.8% -29.7%
(-5,076) (-1,365)
└ Operating margin 7.8% 4.1% -3.7pt 6.5% 4.7% -1.8pt
-30.6% +113.7%
(-2,993) (+2,356)
-51.8% –
(-1,605) (-1,009)
-30.3% -15.6%
(-4,330) (-1,014)
Net sales 136,320 133,933 70,459 69,088
Operating profit 10,626 5,550 4,597 3,232
Ordinary profit 9,771 6,778 2,072 4,428
Profit attributable to
owners of parent 3,096 1,491 -358 -1,367
EBITDA
(Operating prifit + depreciation
+ amortization of goodwill)
14,307 9,976 6,515 5,501

5
Net Sales and Operating Prof it by Business Segment(Unit: Million JPY) Apr.-Sep. 2024
Results
Apr.-Sep. 2025
Results
Jul.-Sep. 2024
Results
Jul.-Sep. 2025
Results
Net sales 72,473 72,316 -0.2% (-157) 36,654 37,852 +3.3% (+1,198)
Operating profit 4,357 258 -94.1% (-4,099) 1,329 1,225 -7.8% (-103)
Net sales 26,431 21,030 -20.4% (-5,401) 14,406 11,133 -22.7% (-3,273)
Operating profit 3,640 -895 – (-4,536) 1,697 -1,032 – (-2,730)
Net sales 18,149 16,594 -8.6% (-1,555) 10,385 7,939 -23.6% (-2,446)
Operating profit 6,072 6,662 +9.7% (+589) 3,666 3,282 -10.5% (-383)
Net sales 8,329 11,106 +33.3% (+2,777) 3,603 5,751 +59.6% (+2,147)
Operating profit -1,007 1,569 – (+2,577) -610 878 – (+1,488)
Net sales 7,658 8,610 +12.4% (+951) 3,683 4,221 +14.6% (+537)
Operating profit 1,447 1,667 +15.2% (+219) 615 808 +31.4% (+193)
Net sales 7,783 6,928 -11.0% (-854) 3,847 3,553 -7.6% (-293)
Operating profit -2,422 -2,090 – (+332) -1,443 -1,068 – (+374)
Net sales -4,506 -2,652 – (+1,853) -2,121 -1,362 – (+758)
Operating profit -1,460 -1,620 – (-159) -657 -862 – (-204)
Animation/Film
Year on year
(changed amount)
Year on year
(changed amount)
Publication/
IP Creation
Gaming
Web services
Corporate/
Eliminations
Education/EdTech
Others

6
Summary of Consolidated Earnings Results for the 2nd Quarter of the Fiscal Year Ending
March 31, 2026 (1)
• Q2 (July -September)
N et sales: -1.9 ％ , operating prof it: -29.7 ％ , ordinar y prof it: +113.7 ％ , net prof it: -1,009M
While Publication /IP Creation saw improving trends compared with Q1, the significant decreases in sales and profit in
Animation /Film, coupled with reduced G am ing sales, resulted in an overall decrease in consolidated sales and profit.
* T h e i m p a c t o f t h e c y b e ra t t a c k p r i m a r i l y a f fe c t i n g P u b l i c at i on / I P C r e a t i o n a n d We b S e r v i c e s ( 2 Q i n t h e p r e v i o u s ye a r : s a l e s
-4 . 9 b i l l i on ye n , o p e ra t i n g p r o f i t -2 . 6 5 b i l l i on ye n ) d i s a p p e a r e d .
➢ 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, t h i s y e a r s a w a h i g h p r o p o r t i o n o f f i r s t -t i m e a n i m a t e d a d a p t a t i o n s . C o m p a r e d t o t h e p r e v i o u s y e a r ,
w h e r e m a j o r a n i m a t e d t i t l e s c o n t r i b u t e d s i g n i f i c a n t ly, ov e ra l l s a l e s a n d p r o f i t d e c l i n e d , i n c l u d i n g s t r e a m i n g l i c e n s i n g a n d
m e r c h a n d i s e /g a me l i c e n s i n g .
➢ I n t h e G a m i n g S e g m e n t, s a l e s o f E L D E N R I N G N I G H T R E I G N r e m a i n e d s t r o n g f o l l o w i n g o n f r o m Q 1 . H o w e v e r, s a l e s a n d o p e ra t i n g
p r o f i t d e c l i n e d c o m p a r e d t o t h e p r e v i o u s y e a r, w h i c h b e n e f i t e d s i g n i f i c a n tl y f r o m c o n t r i b u t i o n s f r o m t h e E L D E N R I N G D L C
(i n t e r n a ti o n a l s h i p m e n t s i n J u n e w e r e a l s o r e c o r d e d i n Q 2 ) .
➢ I n P u b l i c a t i o n /I P C r e a t i o n , t h e i m p a c t o f t h e c y b e ra t ta c k ( 2 Q i n t h e p r e v i o u s y e a r : s a l e s -1 . 8 b i l l i o n y e n , o p e ra t i n g p r o f i t -0 . 8 5 b i l l i o n
y e n ) d i s a p p e a r e d . E-b o o k s a n d i n t e r n a t i o n a l p a p e r -b a s e d b o o k s s a w i n c r e a s e d s a l e s a n d o p e ra t i n g p r o f i t , d r i v e n b y i m p r ov e d t r e n d s
c o m p a r e d w i t h Q 1 . O n t h e o t h e r h a n d , ov e ra l l s e g m e n t s a l e s i n c r e a s e d w h i l e o p e ra t i n g p r o f i t d e c r e a s e d , d u e t o t h e s i g n i f i c a n t i m p a c t
o f r e d u c e d s a l e s o f d o m e s t i c p a p e r -b a s e d b o o k s , d e c r e a s e d e f f i c i e n c y, a n d l o w e r s a l e s f r o m h i g h -m a r g in r i g h t s -l i c e n s i n g .
➢ S a l e s a n d o p e ra t i n g p r o f i t i n c r e a s e d i n We b S e r v i c e s , o w i n g t o t h e i m p a c t o f t h e c y b e ra t t a c k ( 2Q i n t h e p r e v i o u s y e a r : s a l e s -2 . 6
b i l l i o n y e n , o p e ra t i n g p r o f i t -1 . 3 b i l l i o n y e n ) d i s a p p e a r e d , a n d E d u c a t i o n / E d Te c h , w h i c h p e r f o r m e d w e l l a g a i n s t t h e b a c k d r o p o f a n
i n c r e a s e i n t h e n u m b e r o f s t u d e nt s.
➢ W h i l e o r d i n a r y p r o f i t i n c r e a s e d f r o m t h e p r e v i o u s y e a r, w h i c h s a w s i g n i f i c a n t f o r e i g n e x c h a n g e l o s s e s , n e t p r o f i t d e c r e a s e d d u e t o t h e
p o s t i n g o f e x t ra o r d i n a r y l o s s e s r e s u l t i n g f r o m t h e a m o r t i z a t i o n o f g o o d w i l l r e l a t e d t o c o n s o l i d a t e d s u b s i d i a r i e s o f 2 . 7 b i l l i o n y e n .

7
Summary of Consolidated Earnings Results for the 2nd Quarter of the Fiscal Year Ending
March 31, 2026 (2)
• Over the f irst six months,
N et sales : -1.8%, operating prof it : -47.8% , ordinar y prof it : -30.6% , n et prof it : -51.8%.
Th e l ow e r sa l e s a n d prof i t i n Pu bl i ca ti on / IP Cre a t i on a n d An i mat i on / Film cou l d n ot be a bsorbe d by h i gh er
p ro f i t i n G a mi n g , a n d h i g h er sa l e s a n d p ro f i t i n We b S e r vi ces, a n d Ed u ca t i o n /Ed Tech, re su l t ing i n l o w e r
sa l e s a n d p ro f i t o n a co n so l i d a ted b a si s a s a w h o l e.
* T h e i m p a c t o f t h e c y b e ra t t a c k p r i m a r i l y a f fe c t i n g P u b l i c at i on / I P C r e a t i o n a n d We b S e r v i c e s ( i n t h e p r e v i o u s ye a r : s a l e s
-7 . 5 b i l l i on ye n , o p e ra t i n g p r o f i t -4 . 5 b i l l i o n ye n ) d i s a p p e ar e d .
➢ I n P u b l i c a t i o n /I P C r e a t i o n , t h e i m p a c t o f t h e t h e c y b e ra t ta c k ( p r e v i o u s y e a r : s a l e s -3 . 1 5 b i l l i o n y e n , o p e ra t i n g p r o f i t -1 . 6 5 b i l l i o n
y e n ) d i s a p p e a r e d . H o w e v e r, ov e ra l l s e g m e n t s a l e s a n d o p e ra t i n g p r o f i t d e c r e a s e d , m a i n l y d u e t o f a c t o r s s u c h a s t h e d o w n s c a l i n g o f
t i t l e s i n d o m e s t i c p a p e r -b a s e d b o o k s a n d e -b o o k s , t h e e f f e c t s o f a n i n c r e a s e i n s a l e s a n d p r o f i t i n e -b o o k s f r o m 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 i n t h e p r e v i o u s y e a r ( p r e v i o u s y e a r : s a l e s + 2 . 4 b i l l i o n y e n , o p e ra t i n g p r o f i t : + 1 . 8 b i l l i o n y e n ) , a d e c r e a s e i n
r i g h t s -l i c e n s i n g s a l e s , a n d a n i n c r e a s e i n p e r s o n n e l e x p e n s e s , e t c .
➢ I n A n i m a t i o n , s a l e s a n d o p e ra t i n g p r o f i t d e c l i n e d f r o m t h e p r e v i o u s y e a r, w h e n p r i m a r i l y m a j o r t i t l e s c o n t r i b u t e d s i g n i f i c a n t l y t o
e a r n i n g s . I n F i l m , s a l e s a n d o p e ra t i n g p r o f i t d e c l i n e d c o m p a r e d t o t h e p r e v i o u s y e a r, w h i c h s a w s i g n i f i c a n t s e c o n d a r y u t i l i z a t i o n o f
m u l t i p l e t h e a t r i c a l l y r e l e a s e d t i t l e s .
➢ I n G a m i n g , s a l e s d e c r e a s e d d e s p i te t h e d o m e s t i c a n d i n t e r n a t i o n a l s t r o n g p e r f o r m a n c e o f E L D E N R I N G N I G H T R E I G N , c o m p a r e d t o
t h e p r e v i o u s y e a r, w h i c h b e n e f i te d s i g n i f i c a n t ly f r o m t h e c o n t r i b u t i o n s o f t h e E L D E N R I N G D L C .P r o f i t i n c r e a s e d d u e t o a d e c r e a s e i n
s o m e e x p e n s e i t e m s .
➢ B o t h t h e We b S e r v i c e s a n d E d u c a t i o n /E d Te c h s e g m e n t s s a w i n c r e a s e s i n s a l e s a n d o p e ra t i n g p r o f i t. I n We b S e r v i c e s , t h e y i n c r e a s e d
b e c a u s e t h e i m p a c t o f t h e c y b e ra t ta c k ( p r e v i o u s y e a r : s a l e s -3 . 8 5 b i l l i o n y e n , o p e ra t i n g p r o f i t -2 . 3 5 b i l l i o n y e n ) d i s a p p e a r e d , d e s p i t e
a d e c r e a s e i n t h e n u m b e r o f p r e m i u m m e m b e r s . I n E d u c a t i o n / E d Te c h , t h e y w e r e d r i v e n b y s t e a d y i n c r e a s e s i n s t u d e n t n u m b e r s
f o l l o w i n g t h e e s t a b l i s hm e n t o f n e w h i g h s c h o o l a n d u n i v e r s i t y.
➢ O r d i n a r y p r o f i t d e c l i n e d l e s s s i g n i f i c a n t l y c o m p a r e d t o o p e ra t i n g p r o f i t d u e t o s i g n i f i c a n t f o r e ig n e x c h a n g e l o s s e s i n t h e p r e v i o u s y e a r .
O n t h e o t h e r h a n d , n e t p r o f i t s h o w e d a r e l a t i v e l y l a r g e d e c r e a s e d u e t o t h e p o s t i n g o f e x t ra o r d i n a r y l o s s e s r e s u l t i n g f r o m t h e
a m o r t i z a t i o n o f g o o d w i l l r e l a t e d t o c o n s o l i d a t e d s u b s i d i a r i e s o f 2 . 7 b i l l i o n y e n .

8
• In Pu b l i cat io n / IP Cre a t i o n a n d An i ma t io n / Fi lm, f i g u re s a re si g n i f i ca nt ly l o w e r t h a n t h e i n i t i a l fo re ca st , ma i n l y
d u e t o t h e d e cl ine i n sa l e s a n d o p e ra t i n g p ro f i t d u e t o t h e d o w n si zi ng o f t i t l e s.
De sp i t e a si g n i f i ca nt i n cre ase i n G a mi n g , a n d co st re d u cti o ns i n We b S e r vi ces, ove ra l l co n so l i d a ted sa l e s a n d
ope ra t i n g prof i t w e re bot h re vi sed dow n wa rd
✓ I n P u b l i c a t i o n / I P C r e a t i o n , w e w i l l a d v a n c e v a r i o u s m e a s u r e s t o s w i f t l y i m p r o v e o u r d o m e s t i c p u b l i c a t i o n b u s i n e s s ( S e e p a g e 1 4 f o r d e t a i l s ) ,
s t r e n g t h e n o u r I P s t r a t e g y , a n d f u r t h e r g r o w t h i n e -b o o k s a n d i n t e r n a t i o n a l p a p e r -b a s e d b o o k s .
✓ I n A n i m a t i o n / F i l m , t h e f i r s t a n i m a t e d w o r k s o f p o p u l a r I P s a n d m u l t i p l e s e q u e l s t o e x i s t i n g h i t a n i m a t e d s e r i e s w i l l b e d e v e l o p e d . W e a l s o a i m t o
i n c r e a s e t h e n u m b e r o f e p i s o d e s b y e x p a n d i n g i n -h o u s e p r o d u c t i o n s t u d i o s , a n d m a x i m i z e r i g h t s -l i c e n s i n g s a l e s b y a c c e l e r a t i n g t h e g l o b a l m e d i a
m i x .
Revision of Consolidated Earnings Forecasts for the Fiscal Year Ending March 31,
2026
（ Unit: million JPY ）
Results for the fiscal
year ended
March 31, 2025
Initial forecasts for
the fiscal year ending
March 31, 2026
Revised forecasts for
the fiscal year ending
March 31, 2026
Year on year
Initial forecasts
vs
Revised forecasts
Net sales 277,915 291,900 278,200 +0.1 ％
(+285)
-4.7 ％
(-13,700)
Operating profit 16,651 16,700 10,300 -38.1 ％
(-6,351)
-38.3 ％
(-6,400)
Ordinary profit 17,742 18,700 12,400 -30.1 ％
(-5,343)
-33.7 ％
(-6,300)
Profit attributable to
owners of parent 7,393 11,400 4,900 -33.7 ％
(-2,493)
-57.0 ％
(-6,500)
EBITDA
(Operating profit + depreciation +
amortization of goodwill)
24,907 25,500 19,500 -21.7 ％
(-5,407)
-23.5 ％
(-6,000)

9
Consolidated Earnings Forecasts by Business Segment
(Unit: million JPY)
Results for the
fiscal year
ended
March 31, 2025
Initial forecasts
for the fiscal
year ending
March 31, 2026
Revised forecasts
for the fiscal year
ending March 31,
2026
YoY
Initial forecasts
vs
Revised forecasts
Background for the forecast revision
Publication/
IP Creation
Net sales 151,367 167,900 157,800 +4.2%
(+6,432)
-6.0 ％
(-10,100)
•In domestic paper -based books and e -books, sales decreased, mainly due
to the decline in earnings and decreased efficiency due to the downsizing
of titles. Rights licensing sales also fell short of the initial plan.
•In the second half of the fiscal year, although some recovery due to price
revisions and large -scale campaigns will be factored in, the full -scale
effects are expected to manifest in the next fiscal year.
Operating
profit 8,372 11,500 5,300 -36.7 %
(-3,073 )
-53.9 ％
(-6,200)
Animation/
Film
Net sales 51,092 55,400 48,200 -5.7%
(-2,893)
-13.0 ％
(-7,200)
•In Animation, first -time animated adaptations occupied the animated title
lineup, and revenue per title was lower than expected. In the second half
of the fiscal year, major titles are planned to contribute in Q4 , but there
are also multiple titles that are scheduled to be delayed to the next fiscal
year, making sales significantly lower than the initial forecast.
Operating
profit 4,729 5,000 200 -95.8%
(-4,530)
-96.0 ％
(-4,800)
Gaming
Net sales 33,597 26,000 28,000 -16.7%
(-5,598)
+7.7 ％
(+2,000) •FromSoftware’s ELDEN RING NIGHTREIGN has performed well beyond
initial expectations.
•Spike Chunsoft and Acquire are also progressing smoothly. Operating
profit 9,538 3,800 8,400 -11.9%
(-1,138)
+121.1 ％
(+4,600)
Web
Services
Net sales 18,038 20,800 20,400 +13.1%
(+2,362)
-1.9 ％
(-400)
•Business itself is generally as expected for both niconico -related
businesses and the live business.
•On the other hand, costs such as personnel expenses and costs for
securing content are expected to be lower than planned, and operating
profit is expected to be higher than initial forecasts.
Operating
profit -998 500 2,000 –
(+2,998)
+300.0 ％
(+1,500)
Education/
EdTech
Net sales 15,119 17,600 17,200 +13.8%
(+2,081)
-2.3 ％
(-400) •Results have overall been broadly in line with the forecasts. Operating
profit 2,382 2,400 2,400 +0.7%
(+18)
±0％
(±0)
Others
Net sales 17,881 16,800 15,500 -13.3 %
(-2,381 )
-7.7 ％
(-1,300) •In the MD business, both sales and operating profit declined due to
postponement of the release of some products and an increase in
manufacturing unit costs.
•The Recreation business will not reach the same level as the initial plan. Operating
profit -4,204 -2,700 -3,600 –
(+605)
–
(-900)
Corporate/
Eliminate
Net sales -9,181 -12,600 -8,900 –
(+282)
–
(+3,700) — Operating
profit -3,169 -3,800 -4,400 –
(-1,231 )
–
(-600)

Consolidated Earnings Results for the 2 nd Quarter
of the Fiscal Year Ending March 31, 2026

11
72,473 72,316
36,654 37,852
4,357
258
1,329 1,225
0
2,000
4,000
6,000
8,000
0
20,000
40,000
60,000
80,000
FY2024 FY2025 FY2024 FY2025
Business Overview – Publication /IP Creation Segment
■ Net sales ■ Operating profit
(Unit: Million yen)
• The number of new IPs, the foundation of the media mix strategy, increased by 9.6% year
on year (2Q: +9.5%) .
• Although on a YTD basis, sales increased due to the disappearance of the impact of
the cyberattack (YTD in the previous year: -3.15 billion yen, 2Q: -1.8 billion yen) , sales decreased in
terms of actual performance. While 2Q had major titles such as The Summer Hikaru Died ,
in addition to the disappearance of the impact of the cyberattack, sales declined due to
downscaling of titles overall.
• On a YTD basis, sales decreased with fewer hit titles in Q1 and the significant
impact on sales due to the change of sales recognition timing in the previous year (YTD in
the previous year: approx. +2.4 billion yen) . Q2 sales increased (+7.0%) , driven by the strong
performance of media mix titles.
• Sales increased in Q2 and on a YTD basis, primarily due to the steady growth of
existing bases in Asia and the contributions of new bases. In Americas, sales declined on a
YTD basis but turned to growth in Q2.
Net sales: -0.2% / -157M (2Q +3.3 ％ / +1,198M)
Fa ct o rs fo r In cre a se /Decrease i n t h e Fi rst Ha l f
O p e ra t i n g p r o f i t : -21.3 ％ / -2 , 7 9 5 M ( 4 Q + 4 4 . 0 % / + 1 , 4 3 6 M )
• On a YTD basis, the decline in sales of e -books in Q1 and the decrease in marginal profit
from domestic paper -based books had a significant impact, driving down operating profit. In
Q2, while e -books and international paper -based books saw increased profits, overall profits
declined due to decreased profits from domestic paper -based books (see pages 12 -13 for details) .
Operating profit: -94.1 ％ / -4,099M (2Q -7.8% / -103M)
Domestic paper
International paper
E-books
Fu t u re ou t l ook ( pl e a se re fe r t o pa ge 1 4 )
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
Domestic paper -based
books/information
media
YoY +0.5%
Composition ratio: 26%
International paper –
based books
YoY +16.8%
Composition ratio:
13%
Rights -licensing
sales
YoY -15.2%
Composition ratio:
8％
E-books
YoY -6.7%
Composition
ratio: 40%
Other subsidiaries,
etc.
YoY +20.1%
Composition ratio:
12%

12
Overview of Business Performance – Publication /IP Creation Segment
(2Q Factors for Increase /Decrease in Operating Profit)
◆ 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 o p e ra t i n g p r o f i t : Yo Y -7 . 8 % / -103M
FY24 2Q
Operating profit
KADOKAWA non -consolidated Domestic paper -based books/information mediaMarginal profit decrease
International paper -based books
FY25 2Q
Operating profit
Investment expenses
Domestic paper – based books/main media Group companies
Rights licensing sales
E-books
Other 1,329
million yen 1,225
million yen
•Although new bases as a whole are
not yet contributing to profits as they
are still in the initial phase, America s
absorb ed this and led profit increase .
•Operating profit declined due to
differences in projects compared
to the previous year
•Includes effects of increased operating profit from
previous year regarding the cyberattack (approx.
+0.85 billion yen)
•Although the number of new IPs has increased
steadily, the scale of sales per title has
shrunk. Marginal profit worsened due to
increased variable costs due to increased titles.
•Increased investment in the digital manufacturing
plant and the new logistics facilities.
(Investment decreased in the same period of the
previous year due to the impact of the cyberattack)
•Increased investments in the comic book genre
continue d, focusing on digital platforms
•In Q2 , personnel expenses decreased slightly due to a
decrease in provisions for bonuses.
•Effects of ArcLight Inc. sales
increase
•Despite impact from t he sales recognition
timing change in FY2024 (approx. -4.0
billion yen), profit increased mainly due to
the strong performance of media mix
works, etc.

13
Overview of Business Performance – Publication /IP Creation Segment
(Six Months Factors for Increase /Decrease in Operating Profit)
◆ 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 o p e ra t i n g p r o f i t : Yo Y -9 4 . 1% / -4 , 0 9 9 M
FY24 1 -2Q
Operating profit
KADOKAWA non -consolidated Domestic paper -based books/information mediaMarginal profit decrease
International paper -based books
FY25 1 -2Q
Operating profit
Investment expenses
•The sales recognition timing change in
FY2024 (approx. -1.8 billion yen) had a major
impact
Domestic paper – based books/main media Group companies
•In addition to the impact of the year -on -year
increase in inventory devaluation in some
regions in Q1, new bases as a whole are not yet
contributing to profits as they are still in the
initial phase.
•We continue to expect a full -year increase in
sales and operating profit as assumed
•Investment in human resources, mainly
editors, increased, for medium -to long -term
growth and changes to the personnel system
•Increased investments in the comic book
genre continue d, focusing on digital platforms
Rights licensing sales
E-books
Other
•Operating profit declined due to
differences in projects compared
to the previous year
4,357
million yen
258
million yen
•Includes effects of increased operating profit
from previous year regarding the
cyberattack (approx. +1.65 billion yen)
•Although the number of new IPs has increased
steadily, the scale of sales per title has
shrunk. Marginal profit worsened due to
increased variable costs due to increased titles.
•ArcLight Inc. consolidation and sales
increase effects

14
• To sw i f t l y i mp rove o u r d o me st i c p u b l i cat i on b u si n ess a n d st re n g t h en o u r I P st ra t e g y, w e p l a n t o re o rg a n i ze
o u r st ru ct u re a s fo l l o ws
We w i l l co n t i n ue t o a ct i ve ly d e ve l o p co mi cs a n d l i g h t n ove l s, w h i ch a re t h e so u rce o f me d i a mi x. In o t h e r
g e n res, w e w i l l p ro ce e d w i t h co st o p t i mi za t io n.
Publication /IP Creation Segment: Future measures based on f irst -half results
✓ Further implementation of price revisions
✓ Optimizing advertising strategies and costs
✓ Strategic review of low -volume titles
✓ Focus on the comic and light novel genres and maximizing profits, including
organizational restructuring
Publishing Business
Comics, light novels,
lifestyle and practical books,
children’s gooks, etc.
Current situation Upcoming changes
CEO
Literature ＆
Film Business
Comic /
Light Novel
Business
（Provisional name ）
Publishing
Business
lifestyle and practical
books, children’s
gooks, etc.
CEO
Literature ＆ Film
Business
Literature, etc.
• We w i l l t a ke va ri ou s me a su res t o i mprove bu si n ess e f f i ciency a n d focu s on f u r t h er grow t h i n dome st i c
p u b l i ca ti o n
Chief Officer Chief Officer Chief Officer Chief Officer Chief Officer

15
26,431
21,030
14,406
11,133 3,640
-895
1,697
-1,032 -1,500
0
1,500
3,000
4,500
6,000
7,500
9,000
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
FY2024 FY2025 FY2024 FY2025
Business Overview – Animation /Film Segment
• Our animation lineup featured a high proportion of first -time animated film adaptations aimed
at developing new popular series, and sales decreased both in Q2 and on a YTD basis
compared to the previous year, which saw strong contributions from the latest titles in popular
series and other major titles. In Q2, multiple major broadcast and streaming titles experienced
timing shifts with sales being recognized in Q3 or later.
• In Film, sales declined both in Q2 and on a YTD basis compared to the previous year, which
saw significant secondary utilization of multiple theatrically released titles.
Net sales: -20.4% / -5,401M (2Q -22.7 ％ / -3,273M)
Factors for Increase /Decrease in the First Half
Operating profit: -21.3 ％ / -2,795M (4Q +44.0% / +1,436M) • The segment as a whole saw decreased profits in both Q2 and on a YTD basis, mainly due to
significant declines in sales from profitable domestic and international streaming licensing, as
well as licensing for merchandise and game adaptations in Animation .
Operating profit: -/-4,536M (2Q – / -2,730M)
Future outlook
• In Animation for the second half of the year, in addition to the aforementioned timing
differences in accounting, we anticipate contributions from major titles scheduled for
broadcast and streaming in Q4, including Sentenced to Be a Hero , the third season of 【Oshi
no Ko 】, and the second season of Medalist .
• In Animation, in the med -to long -term, we will launch animated adaptations of popular IPs
within our group, including the original game SEKIRO and the children’s book Pan Dorobou ,
alongside multiple sequels to existing hit series. We aim to further strengthen our revenue
base through maximiz ing rights -licensing sales by accelerating global media mix initiatives,
including not only distribution licensing but also merchandise and game adaptations.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit
(Unit: Million yen)
Animation
YoY -23.2%
Composition ratio: 71%
Film
YoY -13.2%
Composition ratio: 30%

16
18,149
16,594
10,385
7,939 6,072
6,662
3,666 3,282
0
3,000
6,000
9,000
12,000
15,000
0
4,000
8,000
12,000
16,000
20,000
FY2024 FY2025 FY2024 FY2025
Business Overview – Gaming Segment
• Sales of the new title ELDEN RING NIGHTREIGN (released in May) remained strong following
on from Q1. However, sales declined both in Q2 and on a YTD basis compared to the
previous year, which benefited significantly from contributions from original ELDEN RING
game and its DLC .
Net sales: -8.6% / -1,555M (2Q -23.6 ％ / -2,446M)
Factors for Increase /Decrease in the First Half
Operating profit: -21.3 ％ / -2,795M (4Q +44.0% / +1,436M) • YTD profit increased due to a decrease in some expense items . Q2 profit declined due to
the above factors that reduced net sales
Operating profit: +9.7% / +589M (2Q -10.5 ％ / -383M)
Future outlook
• We are aiming for further sales growth for ELDEN RING NIGHTREIGN , original ELDEN
RING , and its DLC
• We have multiple game titles in the development pipeline, both for consoles and mobile
platforms
• FromSoftware is currently developing ELDEN RING NIGHTREIGN DLC (planned for release in
FY2025) , ELDEN RING Tarnished Edition (planned for release in 2026 for Nintendo Switch 2) , and
The Duskbloods (planned for release in 2026)
• A mobile game for 【Oshi no Ko 】is under development. (Distribution is planned to begin in 2026)
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit
(Unit: Million yen)
New titles for
consoles and PCs
YoY +1.5%
Composition ratio: 19%
Repeat sales for
consoles and PCs
YoY +7.3%
Composition ratio: 13%
Royalties for
consoles and PCs
YoY -22.9%
Composition ratio: 40%
Others
YoY +4.6%
Composition ratio: 29%

17
8,329
11,106
3,603
5,751
-1,007
1,569
-610
878
-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
FY2024 FY2025 FY2024 FY2025
Business Overview – Web Services Segment
Net sales: +33.3% / +2,777M (2Q +59.6 ％ / +2,147M)
Factors for Increase /Decrease in the First Half
• Sales from the niconico -related business increased in the first six months and in 2Q.
• Although the impact of the cyberattack (YTD in the previous year: -3.85 billion yen, 2Q: -2.6 billion yen)
disappeared, sales declined in real terms, mainly due to a decrease in premium members.
Premium membership saw a moderation in the rate of decline due to the success of measures to
attract customers, such as the granting of privileges.
• Sales growth in the live business was significantly boosted by Animelo Summer Live, held in
Q2, which achieved record attendance.
• In the mobile business, sales declined due to ongoing contraction
• Profit increased both in Q2 and on a YTD basis, primarily due to the disappearance of the
impact of the cyberattack (YTD in the previous year: -2.35 billion, Q2: -1.3 billion) and events like
Ani melo Summer Live in Q2.
Operating profit: -/ +2,577M (2Q – / +1,488M)
Future outlook
• In niconico -related business, we aim to increase users ,and to maintain and expand gross
merchandise value ( GMV )by constantly expanding services . We will continue to explore
opportunities to expand monetization opportunities for music IPs such as VOCALOID*, which
are growing in popularity worldwide. We are also looking to optimize costs overall.
* VOCALOID is a registered trademark of Yamaha Corporation.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit
(Unit: Million yen)
Niconico -related
YoY +45.9%
Composition ratio: 73%
Live
YoY +21.5%
Composition ratio: 19 ％
Mobile
YoY -13.0%
Composition ratio: 8 ％

18
7,658
8,610
3,683
4,221
1,447
1,667
615
808
0
500
1,000
1,500
2,000
2,500
0
2,000
4,000
6,000
8,000
10,000
FY2024 FY2025 FY2024 FY2025
Business Overview – Education /EdTech Segment
• Sales increased both in 2Q and on a YTD basis due to an increase in the number of students.
• At Vantan , the number of students increased due to the opening of the KADOKAWA SCHOOL OF
ANIME in the previous year and other new schools, as well as expansion into new regions
• The number of students increased (+ 11 %) due to the newly built commuter course campus for the N
High School Group, and R High School, which opened this year. The opening of ZEN University also
contributed to increasing the number of students.
Net sales: +12.4 ％ / +951M (2Q +14.6% / +537M)
Factors for Increase /Decrease in the First Half
.0% / +1,436M)
• YTD, though profits decreased due to aggressive advertising spending in Q1 to prepare for
increased student enrollment in the next year and beyond in Vantan ,overall profit increased
due to strong sales growth from the N High School Group / ZEN University businesses. In
Q2, profits increased due to the sales growth impact from both Vantan and the N High
School Group / ZEN University businesses.
Operating profit: +15.2% / +219M (2Q +31.4 ％ / +193M)
Future outlook
• Student enrollment will increase and the business will see continued growth
• At Vantan , we are considering the continuous establishment of new courses and plans to expand
its regional presence, focusing on the provision of popular courses.
The Vantan Music Academy is scheduled to open in April 2026.
• In the N High School Group business, we anticipate continued growth in student enrollment. In the
ZEN University business, we expect the second cohort of students to contribute to a net increase
in enrollment, further improving profitability.
• Efforts to train creators will be further strengthened across the entire Group, together with
accelerated collaboration between schools
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit
(Unit: Million yen)
Vantan
YoY +6.1%
Composition ratio: 67%
For N High School Group /ZEN University
YoY +27.8%
Composition ratio: 33%

19
7,783
6,928
3,847 3,553
-2,422 -2,090
-1,443
-1,068
-2,500
0
2,500
5,000
7,500
10,000
-2,500
0
2,500
5,000
7,500
10,000
FY2024 FY2025 FY2024 FY2025
Business Overview – Others Segment
• In MD, sales declined both in Q2 and on a YTD basis in comparison to the previous year,
which had specific hit products.
• In Recreation, sales increased both in 2Q and on a YTD basis. Strong performance of IP
events across Japan continued, including popular IPs such as Pan Dorobou and Delicious in
Dungeon
※ The overall decrease in segment sales reflects a change in positioning of a group subsidiary promoting digital
transformations following an absorption -type merger by DWANGO ( -1.4 billion yen, no impact on a
consolidated basis including profits )
Net sales: -11.0% / -854M (2Q -7.6 ％ / -293M)
Factors for Increase /Decrease in the First Half
Operating profit: -21.3 ％ / -2,795M (4Q +44.0% / +1,436M)
• In MD, profit declined due to the aforementioned impact of lower sales. Recreation remain ed
flat .
• In other businesses, the impact of the cyberattack (Q2 in the previous year: -500 million yen )
has disappeared.
Operating profit: – / +332M (2Q – / +374M)
Future outlook
• I n M D, w e p l a n t o o f f e r a s t r o n g p r o d u c t l i n e u p a n d s t r e n g th e n e v e n t m e r c h a n d i s e
s a l e s , e x p a n d i n g e a r n i n g s f o r t h e s e c o n d h a l f o f t h e y e a r. I n t h e m e d i u m t o l o n g
t e r m , w e w i l l b o l s t e r o u r g l o b a l e x p a n s i o n a n d s t r e n g t h e n o u r m a j o r I P m e r c h a n d i s e t o
d r i v e b u s i n e s s e x p a n s i o n .
• In Recreation, we will further rationalize each business operating within SAKURA TOWN. In
the medium -to -long term, we aim to maintain the trend of improved performance by
optimizing operating costs and expanding IP events, including globally.
Year to Date
(Apr. -Sep.)
2Q
(Jul. -Sep.)
■ Net sales ■ Operating profit
(Unit: Million yen)
MD
YoY -11.0%
Composition ratio: 36%
Recreation
YoY +22.1%
Composition ratio: 39%
Other
YoY -37.2%
Composition ratio: 25%

Appendix

21
KADOKAWA Group IP Strategy
• Accelerate Global Media Mix with Technology to achieve sustainable growth
Maximize LTV for game -based IPs
Develop high -quality original game IPs
Developing creators
(Education /EdTech, and Web Services segments)
• Develop human resources such as manga artists, animators, and game creators, who are highly compatible with our business
• Discover distributors of music IPs, etc. on UGC platforms
• In addition to addressing industry issues such as the shortage of animators, we also expect to return human resources to the
Group and contribute to profits in the future.
Maximize LTV for publication -based IPs
Create new IPs that are the basis of the Group’s media mix strategy
Strengthen comic genres, including born -digital
Create videos from publication IPs
Create merchandise from publication IPsEvent planning and hosting, licensing out
Create games from video IPs
Other s Segment (MD, IP events)
License out to other companies
• Scale up the MD business, including expansion of overseas sales channels
• Increase revenue by expanding the number of IP events held and the
number of event venues
• Maximize rights -licensing sales from IPs by deepening the level of
collaboration with other companies
Create merchandise from game IPsEvent planning and hosting, licensing out
Publication /IP Creation
Segment
• Improve profitability in domestic paper -based books by improving return rate • Increase the proportion of highly profitable e -books • Expand the international paper -based book business by expanding territories
Animation / Film
Segment
• Increase production volume (expand studio capacity)
• Serialize popular works and cultivate completely new works
• Strengthen relationships with distribution companies
• Maximize profits by increasing investment ratio
Create video s from game IPs
Create books from game IPs
Main media mix process
Publication IPs from other
companies
• Actively license in other companies’ IPs
Create books from video IPs
Create merchandise from video IPs Event planning and hosting, licensing out
Gaming Segment • Maximize LTV for popular titles
• Maximize profits by reconsidering business schemes

22
Publication /IP Creation Segment
670
1,010
3,150
3,070
1,070
760
0
2,000
4,000
6,000
8,000
10,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
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
200,000
0
10,000
20,000
30,000
40,000
50,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
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
Sales trend of paper -based
books /magazines and returns rate
(KADOKAWA Non -consolidated)
(Million JPY) (Titles)
173,674
*Accumulated e -book titles include the number of distribution by chapter
37,852 YOY+3.2% ▼
（ Million JPY ）
（Percentage)
29%YoY+3.8pt
YoY-1.4%▼

23
Publication /IP Creation Segment
100
230
586
343
46
136
171
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
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)
1,612
YoY+9.5 ％▼
Titles contributing to sales
（Titles ）
*Total of IPs including Group companies’ and born -digital titles in addition to KADOKAWA non -consolidated paper -based books
©Anri Sakano 2025 ©Daisuke Aizawa 2025 ©Touzai 2025
©モクモクれん
©Sesuji 2023
Pan Dorobou , Vol.7 The Summer Hikaru Died,
Vol.7
The Eminence in Shadow,
Vol.16
About a Place
in the Kinki Region

24
Publication /IP Creation Segment
E -books /magazines
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
FY2024 FY2025
Net sales of e-books/magazines (left axis)
Accumulated titles of ebooks (right axis)
173,674
Trend of net sales
0
200
400
600
800
1,000
1,200
1,400
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
Trend of international net sales
Net sales breakdown
(April to September)
Global usage situation (MPU)
Comic
74 %
Other
26 %
130
150
170
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
15,481 YoY+7.0 ％
(Million JPY) (Million JPY)
(Thousand people)
YoY+2.5 ％▼
YoY+0.3 ％▼
*Accumulated titles of ebooks include the number of distribution by chapter
*MPU (Monthly Paid User)

25
0
2,000
4,000
6,000
8,000
10,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
Others (including production subsidiaries)
Domestic merchandising
Domestic streaming
International
Animation /Film Segment
16 10
14 19
12
10
FY2024 FY2025
1Q 2Q 3Q 4Q
Net sales of animation business
7,945
YoY-28.2 ％ ▼
Titles contributing to sales The number of
animation titles
TV/Web broadcasts
26
52▼
Number of new titles
Breakdown by media in
Apr. to Sep.
*Including minor investment titles and titles of which KADOKAWA has certain rights
(Million JPY)
17 ％
35 ％
25 ％
22 ％
Theatrical
2
Others
1
©TRIGGER,Hiroyuki Imaishi/ NPSG Partners ©Yuji Iwahara /LDF/ CLEVATESS Project
©2025 Yama Wayama/KADOKAWA/Captivated, by You ©Hirokazu Yasuhara/KADOKAWA/Cultural Exchange with a Game Centre Girl Partners
Captivated, by You/
Let’s Go Karaoke!
Cultural Exchange with a
Game Centre Girl
Clevatess New PANTY & STOCKING with GARTERBELT

26
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
FY2024 FY2025
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
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 ）
Yearly basis 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-29.8 ％ ▼
20.0%
40.0%
60.0%
80.0%
0
12,000
24,000
36,000
48,000
FY2021 FY2022 FY2023 FY2024 FY2025
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

27
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 ）
FY2025 YTD
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 Re:ZERO -Starting Life in Another World –
series 2016
2 PANTY & STOCKING with GARTERBELT 2010
3 Clevatess 2025
4 Please Put Them On, Takamine -San 2025
5 The Eminence in Shadow 2022
6 Overlord series 2015
7 【OSHI NO KO 】 2023
8 The Gorilla God’s Go -To Girl 2025
9 The Risig of the Shield Hero series 2019
10 The Shiunji Family Children 2025
Rank Title Name (Series) Year First
Published
1 Pan Dorobou series 2020
2 Sword Art Online series 2009
3 KADOKAWA Manga Gakushu Series 2015
4 Mushoku Tensei: Jobless Reincarnation 2014
5 Toaru Project 2004
6 The Summer Hikaru Died 2022
7 Project Love Live! 2012
8 Revenge in a Pure White Wedding Dress 2024
9 Bungo Stray Dogs series 2013
10 Re:ZERO -Starting Life in Another World –
series 2014
0 1,000
Re:ZERO -Starting Life in Another World-
series
The Eminence in Shadow
Pan Dorobou series
Overlord series
PANTY & STOCKING with GARTERBELT
Bungo Stray Dogs series
Delicious in Dungeon
The Rising of the Shield Hero series
The Gorilla God’s Go -To Girl
Clevatess
Publication/IP Creation Segment (Books and Magazines)
Publication/IP Creation Segment (Rights-licensing and others)
Animation/Film Segment
Gaming Segment, Others

28
Eagerly Awaited Upcoming Titles
Books Animation
©Kanae Minato 2023, 2025
©Isekai Quartet The Movie/KADOKAWA ©2025 STUDIO CHIZU ©Nanateru /KADOKAWA/KAMISATO – YOBANE.lab
©Beijing iQIYI Science & Technology Co., Ltd, KuaiKan World (Beijing) Technology Co., Ltd. ©Hiromu/ Shogakukan /Chiramune Partners ©Mokumokuren
Now
Printing
Scarlet Classroom of the Elite
3rd Year, Vol.3
Human Specimen The Summer Hikaru Died,
Vol.8
©Syougo Kinugasa 2025
Isekai Quartet3 Alma -chan Wants to Be a
Family!
The Fated Magical Princess:
Who Made Me a Princess
Chitose Is in the Ramune
Bottle

29
Gaming Segment
Trend of sales of Gaming segment Titles contributing to sales
Downloadable Content
“SHADOW OF THE ERDTREE”
for “ELDEN RING”
FY2024 FY2025
1Q 2Q 3Q 4Q 1Q 2Q
Number of newly
released titles for
consoles and PCs
5 1 1 1 2 5
Total number of copies
sold (million copies) 1.33 0.93 1.88 1.89 1.81 1.48
Eagerly awaited upcoming titles
0
3,000
6,000
9,000
12,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
New Titles for consoles and PCs Repeat sales for consoles and PCs
Royalties for consoles and PCs Other
7,939YoY-23.6 ％▼
©Bandai Namco Entertainment Inc. / ©2024 FromSoftware, Inc.
©Bandai Namco Entertainment Inc. / ©2022 FromSoftware , Inc.
“ELDEN RING ”
“ELDEN RING NIGHTREIGN” ©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.

30
Community Platform Related Business (N i c o n i c o a n d Fa n -c o m m u n ity B u s i n e s s )
Niconico user data Niconico Channel user data
Age
Fan -community service 「sheeta 」
Regular members (Million) 107.03
Premium members (Thousand) 97 3
Number of channels 11,7 33
Number of channels with monthly fee 2,539
Dues -paied members (Million) 1.12
*As of September 30, 2025
2.2%
19.9% 36.7% 21.4% 13.3%
6.6%
0% 20% 40% 60% 80% 100%
10s 20s 30s 40s 50s Others
Niconico Chokaigi 2025
Visitors (Thousand) 132
*As of September 30, 2025
*As of September 30, 2025
Number of channels with monthly fee
Dues -paied members ( Thousand )
169
270
*As of September 30, 2025

31
Education /EdTech Segment
Trend of Number of N High School Group Students Trend of Number of Vantan Students
0
10,000
20,000
30,000
40,000
1Q 2Q 3Q 4Q 1Q 2Q
FY2024 FY2025
(Students ) 34,071
Number of
enrolled students
(As of Sep. 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+11 ％▼
YoY+6 ％▼

32
217 852 595 547 292 322
5,867 5,813 6,336 6,992 6,138 6,738
4,343 4,753 2,829
4,430
2,648
3,217
2,065
7,193
4,843
2,481
3,230
4,390
0
5,000
10,000
15,000
20,000
FY2024 1Q 2Q 3Q 4Q FY2025 1Q 2Q
International Net Sales
Breakdown of International Net Sales by Segment
Americas 58.4 % 57.8 ％ 53.5% 50.6% 52.9 ％ 54.9 ％
Asia 32.8% 28.5 ％ 36.4% 39.7% 36.0 ％ 31.9 ％
Others 8.7% 13.7 ％ 10.1% 9.7% 11.1 ％ 13.2 ％
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
18,612
14,452 14,605
12,309
14,669
YoY
-21.2 ％

33
Capital Investment and Depreciation
Capital Investment* Depreciation
6,639
1,395 1,850
7,494
3,563
6,420
0
5,000
10,000
15,000
FY2024 FY2025 1 -2Q FY2025
(Forecast)
8,270
■ Purchase of property, plant and equipment
■ Purchase of intangible assets
4,959
(Million JPY)
7,679
4,049
9,200
0
2,000
4,000
6,000
8,000
10,000
FY2024 FY2025 1 -2Q 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).

34
Balance Sheet Situation
• Repaid 15 billion yen in bank loans in July 2025. We will continue to maintain a sound financial base while
maintaining adequate borrowing capacity.
• There are no changes to our basic financial policies.
As of March 31, 2025 As of September 30, 2025
Equity ratio: 64. 3%
Net Cash: 101.4 billion yen
Equity ratio: 60.9%
Net Cash: 118.2 billion yen
(i)
Investment
Invested funds:
7.1 billion yen
(ii)
Dividend Shareholder dividend:
4.4 billion yen
(Dividend per share:
30 yen)
Capital Allocation in the
First Half of FY2025
Repaid 15 billion yen in
bank loans due in July 2025
+
Total assets
38 4.5 billion yen
Cash and
deposits
113.8 billion
yen
Net assets
27 6.4 billion yen
Liabilities
108.1 billion yen
Interest -bearing debt
12.3 billion yen
Total assets
410 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

35
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 -0 . 9 b i l l i o n J P Y ) w a s -1 . 1 % 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 . 5 b i l l i o n J P Y ) w a s -1 . 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 wa 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 ra 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 mb 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 ly, w h a t wa s t h e g r o w t h ra t e f o r s a l e s a n d o p e ra 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 . 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 + 1 9 . 1 % . 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 . 3 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 4 . 6 % .
Q03
A
W h a t wa 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 ra 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 ra 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 ra t e s ?

36
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 b y 3 Q 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 i ti o n t i m 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 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 : 3 , a n d t h e g r o w t h r a t e s
a r e 3 . 0 % ( B O O K ☆ W A L K E R ) a n d -8 . 2 % ( 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 : 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 3 . 9 % a n d 9 . 0 % e a c h .
Q05
A
Fo 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 wa s t h e ra 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 ra 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 3 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 3 2 % , 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 9 % , 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 2 % , 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 -0 . 1 % , l i g h t n o v e l s -3 % , p a p e r b a c k b o o k s -9 % ,
c h i l d r e n ’ s b o o k s -7 % , m a g a z i n e s + 0 . 4 % ( K A D O K A W A n o n -c o n s o li d a t e d b a s i s ) .
Q06
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 ra 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 ?

37
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 ra 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 5 % 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 2 6 % 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 .
Q08
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 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 s a l e s r e s u l 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 s a l e s o f o r i g i n a l E L D E N R I N G a n d i t s D L C f r o m A p r i l t o S e p t e m b e r ?
W e d o n o t d i s c l o s e r e s u l t s a n d 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 .
Q10
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 a n d n u m b e r o f c o p i e s s o l d f r o m A p r i l t o S e p t e m b e r f o r E L D E N R I N G
N I G H T R E I G N ?

38
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 .
Q12
A
Re 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 ov 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 ?
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 . T h e r e f o r e , w e h a v e n o t d i s c l o s e d w h e t h e r i t w i l l b e i n c l u d e d i n
t h e o u t l o o k 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 6 .
Q11
A
W h e n i s t h e r e l e a s e d a t e f o r E L D E N R I N G Ta r n i s h e d E d i t i o n ? Is i t i n c l u d e d i n t h e o u t l o o k 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 6 ?

©KADOKAWA CORPORATION 2025
• 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 i o 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 .