Kadokawa Corporation Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2022

Kadokawa Corporation achieved substantial financial growth during the nine-month period ending December 31, 2022, characterized by a 20.4 percent increase in net sales to 189.7 billion yen and a 51.7 percent rise in operating profit to 19.4 billion yen. This performance was anchored by the exceptional success of the gaming segment, where the global release of Elden Ring catalyzed a 206.4 percent surge in segment sales and a dramatic 2,133 percent increase in operating profit. While the publication and video segments faced profitability challenges due to heightened investment costs, the overall corporate trajectory remains positive, prompting an upward revision of full-year financial forecasts across net sales, operating profit, and EBITDA.

Strategic organizational shifts have further strengthened the company’s market position. A pivotal development involved a private placement by the subsidiary FromSoftware, which raised capital surplus by nearly 22 billion yen and adjusted Kadokawa’s ownership stake to 69.7 percent. This move is intended to accelerate global intellectual property development and enhance long-term competitiveness. Simultaneously, the company elevated its education business to a reportable segment, signaling its increasing strategic importance within the broader corporate portfolio.

The company maintains a robust balance sheet, with total assets reaching 376.5 billion yen supported by strong cash reserves and capital expansion. By leveraging the massive commercial impact of its gaming division while diversifying into education and digital sectors, the organization has solidified its financial foundation. These results underscore a transition toward high-growth digital entertainment and educational services, positioning the firm to navigate rising operational costs while sustaining momentum in the global market.