Supplementary Materials to the Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

Overview of Results

For the second quarter of the fiscal year ending March 2027, consolidated results were: revenue 46,612 hundred million yen, operating income 15,161 hundred million yen, and net income attributable to owners of parent 12,980 hundred million yen. Although revenue increased year-over-year, increases in selling, general and administrative expenses and profit pressure from revisions to overseas video contracts led operating income and net income to decline versus the prior year. By segment, licensing and merchandise sales remained strong, while animation production and distribution experienced declines in both revenue and profit due to the revision impacts.

Outlook and Investment Considerations

Based on first-half results, full-year forecasts were revised. Although the first half fell short of plan, a recovery is expected in the second half; the amounts of the full-year forecast revisions are shown below. Investment initiatives under the medium-term plan VISION2030 will continue; progress in strategic investments has contributed to higher SG&A, but growth of overseas IP and expanded utilization of the domestic IP library are expected.