Notice of the 12th General Meeting of Shareholders: Japan

Kadokawa Corporation’s 12th annual shareholders’ meeting, scheduled for June 24 2026, serves to present FY 2025‑26 financial results, audit findings and a mid‑term management plan that frames the next two fiscal years as a “structural reform period.” The board proposes twelve directors, including two newly nominated outside directors—Koichi Kusano and Koji Okura—whose legal, governance, finance and restructuring expertise are expected to reinforce audit oversight and risk management. A motion to dismiss one director is opposed by the board, underscoring its commitment to continuity.

Financially, the Group recorded a ¥17.0 billion net sales decline of 4.7 % YoY, with operating losses of ¥3.97 billion driven by weaker recreation and MD segments amid rising anime production costs and a shrinking domestic print market. Capital expenditures of ¥9.98 billion focused on e‑book technology, studio expansion and gaming development, reflecting the CEO’s “Global Media Mix with Technology” strategy. The company targets ¥400 billion sales, ¥38 billion operating profit and 9.4 % ROE for FY2026‑27, with a projected ¥180 EPS by FY2031. Recent acquisitions of Edizioni BD S.r.l. and SOZO Pte. Ltd., each adding significant goodwill, signal a strategic push into global media and event hosting.

Governance structures remain robust: all outside directors attended every committee meeting, contributed constructively to oversight and compensation reform, and the independent auditor received ¥107 million with no indemnity agreements. Internal audit processes are reported to an Audit Committee Office, and compliance measures have been tightened following a Fair Trade Commission recommendation. The Group’s financial base includes ¥10,153 million in long‑term borrowings and a fair‑value classification that keeps investment securities at Level 1. Overall, Kadokawa’s disclosures portray a company actively restructuring its operations, reinforcing governance, and pursuing growth through technology‑enabled media expansion.