Earnings Presentation Materials: Matters Concerning Business Plan and Growth Potential October 13, 2026

Overview of Results

For the fiscal year ended August 2026, decreased revenues from major operated titles and the impact of service terminations resulted in a full-year operating loss, and profitability was not achieved. However, in 4Q the company implemented a review of its cost structure and achieved a turnaround to operating and ordinary profit. The company will continue initiatives to expand new development and IP collaborations. For the year ending August 2027, it aims to achieve profitability in the first year by combining recovery of profitability, suppression of development costs, and full-year contributions from collaborative titles.

Outlook and Investment Decision Points

As a mid-term policy for the next three years, the company will promote expansion of collaborations with strong IPs and restart original title development. By improving development cost efficiency through the SEED platform and AI utilization, it will maintain a lean, highly skilled structure. The company aims for operating profitability in the year ending August 2027, with the period from the year ending August 2028 expected to be a concentrated release period for new titles, and the year ending August 2029 aiming for profit growth from multiple titles. Progress and cost-effectiveness of collaboration projects such as with Sanrio Games will be key.