Summary of Consolidated Financial Results for the Six Months Ended September 30, 2022 (Based on Japanese GAAP)

Koei Tecmo Holdings Co., Ltd. reported consolidated financial results for the first half of the fiscal year ending March 31, 2023, covering the period from April 1, 2022, to September 30, 2022. The data reflects a period of transition for the Japanese game developer, characterized by rising operating efficiency despite a contraction in overall net sales and net profit.

Net sales for the six-month period reached 34.76 billion yen, representing a 6.6% decrease compared to the same period in the previous year. Despite this decline in revenue, operating profit grew by 11.6% to 18.32 billion yen, driven by a significant reduction in the cost of sales. However, ordinary profit fell by 29.5% to 17.67 billion yen, and profit attributable to owners of the parent decreased by 24.8% to 13.65 billion yen. This divergence between operating and ordinary profit was largely due to non-operating factors, including a 7.46 billion yen loss on the valuation of derivatives and a 3.27 billion yen loss on the redemption of securities.

The company’s financial position remains stable with total assets of 206.49 billion yen and an equity ratio of 60.7%. For the full fiscal year ending March 31, 2023, the company forecasts net sales of 77 billion yen, which would represent a 5.8% year-on-year increase. However, full-year operating profit is expected to decline by 5.9% to 32.5 billion yen, with net profit projected to fall by 10.9% to 31.5 billion yen. These results were prepared in accordance with Japanese GAAP and highlight the impact of volatile investment securities and derivative valuations on the company's bottom line.