Kadokawa Dwango Corporation Summary of Consolidated Financial Results for the Year Ended March 31, 2020

Kadokawa Dwango Corporation’s consolidated financial results for the fiscal year ended March 31, 2020, demonstrate a significant recovery in profitability compared to the previous year. The company reported net sales of 204.65 billion yen, a slight decrease from the 208.61 billion yen recorded in the prior fiscal year. Despite the marginal decline in top-line revenue, operating profit surged to 8.09 billion yen, representing a 198.7% increase, while ordinary profit rose by 108.9% to 8.79 billion yen. The company successfully transitioned from a net loss of 4.09 billion yen in the previous year to a profit attributable to owners of the parent of 8.10 billion yen for the 2020 fiscal year.

The financial position of the company remained stable, with total assets reaching 242.99 billion yen as of March 31, 2020, up from 240.07 billion yen the previous year. Net assets also grew to 107.38 billion yen, resulting in an equity ratio of 43.3%. Cash flows from operating activities improved substantially to 16.52 billion yen, compared to 5.86 billion yen in the prior period. Conversely, cash flows used in investing activities increased to 29.91 billion yen, largely driven by capital expenditures and changes in time deposits.

These results were prepared in accordance with Japanese GAAP. The company maintained a consistent capital structure, with no changes in significant subsidiaries or accounting policies during the reporting period. The board declared an annual dividend of 30 yen per share for the fiscal year, reflecting the improved earnings performance and a commitment to shareholder returns. The company continues to operate with a focus on its core business segments, navigating market conditions to achieve a stronger bottom-line outcome despite a challenging revenue environment.