Financial Results: For the Fiscal Year Ending March 2021

Koei Tecmo achieved record-breaking financial performance during the fiscal year ending March 2021, characterized by a 41.6% increase in net sales to ¥60.37 billion and a 93.1% surge in net profit to ¥29.55 billion. This growth was primarily catalyzed by the Entertainment segment, where overseas sales nearly doubled and mobile revenue rose by 80.9%. Success was driven by high-profile releases such as Hyrule Warriors: Age of Calamity and the strategic licensing of core intellectual properties, particularly the Romance of the Three Kingdoms series, which bolstered the company’s presence in the global smartphone market.

The strategic framework relies on a multi-layered revenue cycle that maximizes the lifecycle of established intellectual property through cross-platform expansion and international collaborations. By leveraging console-originated IP into mobile spin-offs and licensing agreements, the company has reached 99 million cumulative downloads with a 70% overseas ratio. The successful establishment of the Nioh franchise, which reached 5 million units sold, serves as a blueprint for future growth. The medium-term management plan through fiscal year 2023 targets ¥90 billion in sales and ¥30 billion in operating profit, supported by the development of new high-budget IP and a robust pipeline of smartphone titles.

For the upcoming fiscal year, projections indicate a 7.7% increase in total net sales to ¥65 billion, though net profit is expected to moderate slightly to ¥26.5 billion due to increased competition and shifting market conditions. While overseas console unit sales are forecasted to decline, a 14.5% increase in digital downloads and mobile engagement is expected to offset these losses. The company remains committed to a shareholder-focused financial policy, maintaining a 50% consolidated payout ratio while reinvesting in global IP expansion to ensure long-term sustainability across the Japanese and international markets.