Notice Regarding Revision of Consolidated Earnings Forecast

Kadokawa Corporation has issued a downward revision to its profit attributable to owners of the parent for the fiscal year ending March 31, 2027. While the company maintains its original projections for net sales, operating profit, and ordinary profit, the forecast for net income has been reduced from 5.8 billion yen to 1.0 billion yen, representing an 82.6 percent decrease. This adjustment reflects the financial impact of internal structural changes implemented during the first quarter of the fiscal year.

The primary driver for this revision is the recognition of an extraordinary loss of approximately 5.4 billion yen, which resulted from the implementation of a special early retirement program. Despite this significant one-time charge, the company reports that performance across its business segments remains robust, particularly within the Publication and IP Creation divisions. The structural reforms are expected to yield long-term operational efficiencies, with anticipated personnel expense savings of approximately 1.1 billion yen beginning in the second quarter.

The revised outlook covers the full fiscal year ending March 31, 2027, and is based on performance data available as of August 13, 2026. Although the company has opted to keep its operating and ordinary profit forecasts unchanged at 10.1 billion yen and 12.0 billion yen respectively, management acknowledges that actual results may fluctuate based on future market conditions and operational developments. The revision serves to align the company's bottom-line expectations with the immediate costs associated with its ongoing corporate restructuring efforts.