Akatsuki Summary of Consolidated Financial Statements for the Third Quarter of Fiscal Year Ending March 31, 2022

Akatsuki Inc.’s consolidated financial results for the first nine months of the fiscal year ending March 31, 2022, reflect a period of transition and strategic realignment. The company reported net sales of 18,775 million yen, representing a 20.7% year-on-year decline, while operating profit fell 46.8% to 4,950 million yen. Profit attributable to owners of the parent reached 3,784 million yen, a 35.0% decrease compared to the same period in the previous fiscal year. These results were primarily driven by the performance of the Games business, which faced a challenging market environment and increased investment costs for new titles, despite the continued long-term operation of major titles such as Dragon Ball Z Dokkan Battle and Romancing SaGa Re;univerSe.

The company maintains a strong financial position with total assets of 45,909 million yen and an equity ratio of 80.1% as of December 31, 2021. During this period, the company adopted new accounting standards for revenue recognition and fair value measurement, though the impact on overall financial statements remained minor. Due to the inherent volatility of the gaming industry and a strategic shift toward becoming an intellectual property (IP) production company, management has opted not to provide full-year earnings forecasts for the fiscal year ending March 31, 2022.

A significant strategic development announced alongside these results is the planned corporate split of the Games business into a wholly-owned subsidiary, Akatsuki Games, Inc., effective April 1, 2022. This restructuring aims to enhance decision-making speed and operational focus. Additionally, the company is establishing the Dawn Capital 1 Investment Limited Partnership, with a maximum investment capacity of 5 billion yen, to accelerate its involvement in the startup ecosystem and further its transition toward a broader IP-focused entertainment group.