Financial

Financial Results for the First Half: Fiscal Year Ending March 2026

Summary

Koei Tecmo Holdings reported first‑half fiscal 2026 results, showing sales of ¥35.2 billion and operating profit of ¥10.7 billion, both surpassing the company’s initial forecasts but falling 11.2 % and 25.2 % respectively compared with the same period in FY24. Net profit declined 15.7 % to ¥13.5 billion, driven mainly by a contraction in the online and mobile entertainment segment; repeat sales of existing titles offset declines in new releases. Labor costs rose, yet variable and outsourcing expenses fell, improving operating efficiency. Segment analysis revealed a 12 % drop in entertainment sales to ¥28.5 billion, while amusement and real‑estate units grew modestly (¥2.3 billion and ¥635 million respectively). The “Other” segment recorded a loss of ¥320 million, reflecting venture‑capital management costs. Forecasts for FY25 maintain a conservative outlook: projected sales of ¥92 billion, operating profit of ¥31 billion, and net profit of ¥27 billion, with a dividend per share of ¥43. The company expects the second half to benefit from new title launches scheduled for Q3 onward. The presentation also covered corporate governance and compliance, noting a successful treasury‑share disposal in September 2025 that raised tradable shares to 37.3 %, meeting Tokyo Stock Exchange Prime Market criteria. Strategic highlights include the fourth medium‑term plan, “Creating a Foundation for Growth,” targeting cumulative operating income of ¥100 billion over three years and a single‑year profit goal of ¥40 billion. Emphasis is placed on balanced pipeline development, multi‑platform releases, and global expansion through strengthened overseas marketing and publishing partnerships. The IP division’s focus on licensing and merchandise, particularly for the Atelier series, aims to diversify revenue streams and enhance brand value worldwide.

From the report

KT Level up your happiness Financial results for the First Half Financial results for the First Half of the fiscal year ending March 2026 KOEI TECMO HOLDINGS CO., LTD. KOEI TECMO HOLDINGS CO., LTD. < Manuscript>

4. 4th Medium-Term Plan Business Strategy Update 1. Financial Highlights and Forecasts agenda agenda 1. Financial Highlights and Forecasts 2. Business Highlights 3. Maintaining listing on the Prime Market 4. 4th Medium-Term Plan Business Strategy Update 5. Product introduction video 6. Q&A -Business Strategy IP Development 5. Product introduction video 6. Q&A 13 < Manuscript> Thank you very much for participating in the financial results briefing today. First, I would like to explain the financial highlights and Forecasts.

Financial Highlights: Consolidated Results (Million Yen) FY24 H1 FY25 H1 Vs Previous Year Amount Profit Ratio Amount Profit Ratio Amount Percent Change Sales 35,197 - 31,268 - (3,929) -11.2% Operating Profit 10,651 30.3% 7,964 25.5% (2,687) -25.2% Ordinary Profit 21,000 59.7% 17,795 56.9% (3,205) -15.3% Net Profit 15,975 45.4% 13,465 43.1% (2,510) -15.7% ◆Year-on-year increase or decrease [Sales] Entertainment business (online and mobile） decreased [Cost] decreases overall. Labor costs increased, variable costs decreased. [Non-operating income and expenses] Steady although not reached the previous fiscal year © KTHD © KTG < Manuscript> The consolidated results for the first half are as described. Both sales and profit exceeded the initial forecast. In the current period, there were no major new releases, and repeat titles were the main focus. Compared to the previous year, mainly in the entertainment business, sales and profit decreased due to a decline in sales in the online and mobile segments. Although labor costs have increased, overall, there was a decrease in expense such as variable along with decline of the sales in the online and mobile sector. Although non-operating income and expenditure did not reach the high revenue of the previous year, it was a solid trend.

Financial Highlights: Consolidated Results Both sales and profit exceeded initial expectations (Million Yen) FY25 H1 Earnings FY25 Forecast VS Previous Year Forecast Amount Ratio Amount Ratio Amount Ratio Sales 30,000 - 31,268 - 1,268 4.2% Operating Profit 5,000 16.7% 7,964 25.5% 2,964 59.3% Ordinary Profit 8,000 26.7% 17,795 56.9% 9,795 122.4% Net Profit 6,000 20.0% 13,465 43.1% 7,465 124.4% © KTHD © KTG < Manuscript> While sales and profits decreased compared to the previous year, they exceeded the initial forecast for the first half. The increase in repeat sales of existing titles, along with a reduction in outsourcing processing costs and advertising expenses, contributed to the overall improvement. In addition, we operate while closely monitoring financial market trends. Non-operating income and expenditure also remained strong.

Financial Highlights by Segment (Million Yen) FY24 H1 FY25 H1 Change Entertainment Sales 32,761 28,503 (4,258) Operating Profit 10,371 7,747 (2,624) Amusement Sales 2,083 2,294 211 Operating Profit 252 384 132 Real Estate Sales 600 635 35 Operating Profit 145 153 8 Others Sales 153 177 24 Operating Profit (118) (320) (202) Corporate & Elimination Sales (401) (341) 60 Operating Profit - - - Total Sales 35,197 31,268 (3,929) Operating Profit 10,651 7,964 (2,687) ◆Year-on-year increase or decrease [Entertainment] Sales decline in the online and mobile sector [Amusement] AM facility business, existing stores are doing well [Real Estate] Concert hall “KT Zepp Yokohama” contributed 5 © KTHD © KTG < Manuscript> The results by segment are as you can see. The Entertainment segment is as described in the consolidated results. The amusement segment experienced an increase in both revenue and profit, driven by strong sales at existing amusement facilities and an increase in contract development sales in the slot and pachinko business. The Real Estate segment increased due to the contribution of KT Zepp Yokohama The Other segment is the venture capital business, management costs of invested funds are recorded.

Earnings Forecast (Million Yen) FY24 Results FY25 Forecast VS Previous Year Amount Ratio Amount Ratio Amount Ratio Sales 83,150 - 92,000 - 8,850 10.6% Operating Profit 32,119 38.6% 31,000 33.7% (1,119) -3.5% Ordinary Profit 49,988 60.1% 37,000 40.2% (12,988) -26.0% Net Profit 37,628 45.3% 27,000 29.3% (10,628) -28.2% Dividend per Share(Yen) 60 ー 43 ー (17) -28.3% Payout Ratio 50.4% ー 51.8% ー +1.4pt<sub>ー</sub> ◆Assumptions for Forecasts ・New titles are concentrated in the second half of the year. The earnings forecast also includes titles scheduled for release within the fiscal year. ・There is no risk assumption such as recording large temporary expenses. ・The exchange rate premise is 140 yen per dollar → for operating profit, fluctuations of 100 million yen or more per 1 yen exchange rate change. ◆Progress ・As of the second quarter, operating profit exceeded the initial plan. ・The full-year earnings forecast is unchanged at this time as it depends on sales of new products. 6 © KTHD © KTG < Manuscript> I would like to explain the earnings forecast. Although the operating profit for the first half exceeded the plan, the current period's sales and profits are expected to be weighted more heavily in the second half due to the concentration of new product launches in the third quarter and beyond. Therefore, the full-year earnings forecast remains conservative, and no revisions have been made.

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