Supplementary Financial Materials for the First Quarter of the Fiscal Year Ending May 2027

Overview of Performance

Net sales for the first quarter were 2,687 million yen, a year-over-year increase of 2.3%. Operating income reached 555 million yen, marking a return to profitability. Ordinary income was 908 million yen, and net income attributable to owners of the parent for the quarter was 659 million yen, resulting in a substantial return to profit. At the Q1 stage, progress against the full-year forecast was 25.6%. Initiatives are underway to improve future earning capacity using core operating income metrics.

Future Strategy and Investment Policy

As part of the growth strategy, the company will continue to capitalize on the effects of collaborations and campaigns with major IPs while promoting low-cost development through AI utilization. By withdrawing from unprofitable titles and transforming the earnings structure, the company aims to achieve operating income exceeding 2,000 million yen within two years. For the fiscal year ending May 2027, core operating income will be used as a new metric, and approximately 300 million yen of R&D expenses are planned.