Summary of Financial Results for Fiscal Year Ending December 31, 2020 (Japanese GAAP) (Consolidated)

KLab Inc. achieved a resilient financial performance for the fiscal year ending December 31, 2020, characterized by a 9.1% year-on-year revenue increase to 33.95 billion yen. This growth was primarily driven by the sustained success of core intellectual properties within the Game Business segment, including titles such as BLEACH Brave Souls, Captain Tsubasa: Dream Team, and Love Live! School Idol Festival ALL STARS. Strategic expansions into the Steam platform and broader Asian markets allowed legacy titles to reach significant milestones, such as 50 million downloads, while the implementation of subscription models and in-game advertising further diversified the revenue base.

Profitability metrics showed significant improvement, with operating income rising 28.4% to 2.15 billion yen. This increase was largely facilitated by a reduction in selling, general, and administrative expenses, specifically through optimized public relations and promotional spending. Net income attributable to owners of the parent doubled year-over-year to 767 million yen, effectively increasing earnings per share from 10.20 yen to 20.08 yen. These gains occurred despite external pressures, including a substantial foreign exchange loss of 670.8 million yen and costs associated with goodwill amortization.

The company concluded the fiscal year with a strengthened liquidity position, reporting 8.01 billion yen in cash and equivalents. This financial stability was supported by robust operating cash flows of 3.98 billion yen and successful financing activities. Despite the global economic volatility introduced by the COVID-19 pandemic, the transition to telecommuting and multi-platform development strategies ensured operational continuity. Looking forward, revenue for the 2021 fiscal year is projected to remain stable between 33 and 35 billion yen, reflecting a conservative yet steady outlook for the Japanese and international mobile gaming markets.