Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
May 13, 2024
Listed company name:
Drecom Co., Ltd.
Listing
Tokyo Stock Exchange
Code number
3793
URL:
https://drecom.co.jp/
Representative
Representative Director: Yuki Naito
Contact person
Director, Hideki Goto
(TEL) +81 (0)50-3101-9977
Scheduled date of annual general meeting of shareholders:June 26, 2024
Scheduled date to file annual securities report:
June 26, 2024
Scheduled start date to commence dividend payments:
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results briefings:
Yes(Rounded down to nearest million yen)
1. Consolidated Financial Results for the fiscal year ended March 31, 2024 (From April 1, 2023 to March 31, 2024)(1) Consolidated operating results(The percentages are year-on-year changes)
Net sales

Operating Income

Fiscal year ended
March 31, 2024

Million yen
9,779

%
-9.5

Million yen
903

%
-60.4

Million yen
793

%
-63.8

March 31, 2023

10,800

2.6

2,281

43.4

2,192

42.2

Note: Comprehensive income

Attributable toowners of parent
quarterly net income
Million yen
%
104
-91.0

Ordinary income

1,159

43.6

For the fiscal year ended March 31, 2024 ¥116 million (-90.0%)
For the fiscal year ended March 31, 2023 ¥1,159 million (43.3%)

Net income
per share

Diluted earnings
per share

Return on equity

Fiscal year ended
March 31, 2024

Yen
3.64

Yen
3.64

%
1.9

March 31, 2023

40.70

40.62

22.9

Ratio of ordinary Ratio of operating
income to total
income toassetsnet sales
%
%
6.0
9.2
20.0

21.1

Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2024
For the fiscal year ended March 31, 2023

¥ - million¥ - million(2) Consolidated financial condition
Total Assets
As ofMarch 31, 2024
March 31, 2023

Net Assets

Million yen
14,148
12,226Equity-to-asset ratio

Million yen
5,668
5,631

Net assets per share

%
39.7
45.6

Reference: Equity capital

Yen
196.29195.70

As of March 31, 2024
As of March 31, 2023

¥5,615 million¥5,579 million(3) Consolidated cash flows
Cash flows fromoperating activities
As ofMarch 31, 2024
March 31, 2023

Cash flows frominvesting activities

Million yen
-473
2,665

Cash flows fromfinancing activities

Million yen-2,048-2,017

Cash and cash equivalents
at end of period

Million yen
2,413
658

Million yen
5,932
6,040

2. Dividends
Ratio of

Annual dividendsFirstquarter-end

Secondquarter-end

Thirdquarter-end

Fiscalyear-end

Fiscal year ended
March 31, 2023
March 31, 2024

Yen
-

Yen
0.00
0.00

Yen
-

Yen
5.00
0.00

Yen
5.00
0.00

March 31, 2025
(Forecast)

-

0.00

-

-

-

Total

Total cash
Payout ratio dividends to net
dividends
assets(Consolidated(Total)(Consolidated)
Million yen
%
%
145
12.3
2.8
-

(Note) The year-end dividend forecast for the fiscal year ending March 31, 2025 has not yet been determined.

- 1 -3. Forecast of consolidated financial results for fiscal year ending March 31, 2025 (April 1, 2024 - March 31, 2025)
The percentages are from the fiscal year ending March 31, 2024 changes)
Profit attributable
Earnings
Net sales
Operating income Ordinary incometoper shareowners of parent
Fiscal year ending
March 31, 2025

Million yen
13,500% Million yen
38.0
1,000

% Million yen
10.7
900

% Million yen
13.5
400

%
284.4

Yen
13.98

* Notes(1) Changes in significant subsidiaries during the period:None(changes in specified subsidiaries resulting in the change in scope of consolidation)(2) Changes in accounting policies, changes in accounting estimates, and Restatements(i) Changes in accounting policies associated with revisions to accounting standards, etc.: None(ii) Changes in accounting policies other than those specified in (i) :None(iii) Changes in accounting estimates:None(iv) Restatement:
None(3) Number of issued shares (common shares)
(i)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

29,224,108 shares

As of March 31, 2023

29,129,591 shares

Number of treasury shares at the end of the period
As of March 31, 2024

615,695 shares

As of March 31, 2023

621,595 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Fiscal year ended March 31, 2024

28,570,583 sharesFiscal year ended March 31, 2023

28,482,068 shares(Note) 581,600 shares of the Company (5,816 voting rights) owned by Custody Bank of Japan, Ltd.
(hereinafter referred to as “ESOP Trust Unit”) are included in the number of treasury stock at the end of the above period.
(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Non-consolidated operating results(The percentages indicate year-on-year changes)
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended
March 31, 2024

Million yen
8,008

%
-11.1

Million yen
192

%
-86.2

Million yen
585

%
-62.0

Million yen
356

%
-52.1

March 31, 2023

9,005

2.2

1,389

30.1

1,540

25.5

744

9.7

Basic earnings
per share
Fiscal year ended
March 31, 2024
March 31, 2023

Diluted earnings
per share
Yen
12.48
26.14

Yen
12.46
26.09

(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023

Reference: Equity CapitalMillion yen
13,278
11,048

Net assets

Equity-to-asset ratio

Million yen
4,988
4,700
As of March 31, 2024: ¥4,939 million

%
37.2
42.1

Net assets per share
Yen
172.65163.15

As of March 31, 2023: ¥4,651 million*Financial statements are not subject to review by a certified public accountant or auditing firm.
*Proper use of earnings forecasts, and other special matters(Notes on future descriptions)
The forecasts above are based on information currently available and certain assumptions deemed reasonable by theCompany as of the date of release of this document. Actual future results may differ from forecasts figures due to various
factors(How to obtain supplementary explanatory materials for financial results)
The Company is scheduled to hold a briefing for financial results targeting institutional investors and analysts on May 13,- 2 -2024. The financial results presentation materials to be distributed at this briefing will be posted on the Company's website
immediately after the briefing.
(Publication of 'Business Plan and Growth Potential Matters')“The Business Plan and Growth Potential Matters” is scheduled to be published in June 2024.

- 3 -Table of Contents
1. Overview of business results, etc. ...................................................................... - 5 (1) Summary on operating results for the fiscal year ended March 31, 2024 .................................. - 5 (2) Summary of Financial Position ...................................................................... - 6 (3) Summary of cash flows ............................................................................. - 6 (4) Future outlook..................................................................................... - 7 2. Basic approach to the selection of accounting standards................................................... - 7 3. Consolidated statements and key notes ................................................................. - 8 (1) Consolidated Balance Sheet ........................................................................ - 8 (2) Consolidated statements of income and consolidated comprehensive income statements .................. - 10 Consolidated statement of income ................................................................... - 10 Consolidated statements of comprehensive income .................................................... - 11 (3) Consolidated statement of changes in net assets ..................................................... - 12 (4) Consolidated statements of cash flows .............................................................. - 14 (5) Notes to consolidated financial statements ........................................................... - 15 (Notes on premise of a going concern) ............................................................... - 15 (Change in accounting policy) ....................................................................... - 15 (Information by segment, etc.) ....................................................................... - 15 (Per share data) ................................................................................... - 18 (Significant Subsequent Events) ..................................................................... - 19 4. Other .............................................................................................. - 19 -- 4 -

1. Overview of business results, etc.
(1) Summary on operating results for the fiscal year ended March 31, 2024
Our group upholds "with entertainment" as its raison d'être, aiming to continuously create services that exceed
people's expectations. We also strive to create value that has never existed before and deliver experiences that
captivate users. In the medium term, we aspire to become a company that provides entertainment content globally,
centered on IP x technology, with a focus on sustainable growth and enhancing corporate value.
In our mainstay game business, game development and operation are our primary activities, including thedevelopment and operation of third-party IP games, game platforms, and original games. In our media business,
we aim to own and nurture IP by publishing and selling books and e-books, such as novels and comics. Additionally,
we are leveraging our expertise in internet services and advanced technologies to launch new services on a trial
basis, repeatedly testing them with the aim of commercialization.
In the current consolidated fiscal year ended March 31, 2024, our performance resulted in net sales of 9,779,099
thousand yen (down 9.5% from the previous year), operating income of 903,038 thousand yen (down 60.4%), andordinary income of 793,171 thousand yen (down 63.8%). In the game business, we decided to close two new titles
released at the end of the previous fiscal year ended March 31, 2023 and in the first quarter of the current fiscal
year ended March 31, 2024, and to discontinue development on one title that was in the unpublished/prototype
stage, and an impairment loss was recorded in a special loss of 746,234 thousand yen. As a result, net income
attributable to owners of the parent company amounted to 104,051 thousand yen (down 91.0% year-on-year).
Results by segment are as follows.
Game businessIn the gaming business, existing long-term operational titles performed well throughout the year and contributed toour revenue. In this segment, we aim to layer revenues not only from operational titles but also through the releaseof new titles. However, the performance of the newly released titles fell short of expectations, leading us to review
our operational and development portfolio. As a result, we decided to close two new titles released at the end of theprevious fiscal year and in the first quarter of the current fiscal year, and to discontinue the development of one title
that was in the unpublished/prototype stage.
Regarding net sales, although our main IP titles performed well, other operational titles performed below theprevious year's levels, resulting in a decrease compared to the previous fiscal year.
As for profits, in addition to the aforementioned decrease in sales, there were increased expenses associated withthe release of two new self-published titles at the end of the previous fiscal year and in the first quarter of the current
fiscal year, leading to a decrease compared to the previous fiscal year.
As a result, segment sales amounted to 9,349,181 thousand yen (down 11.1% from the previous fiscal year), andsegment profit amounted to 1,896,650 thousand yen (down 34.7%). In this segment, our core business, we willcontinue to strive to maintain stable revenue from existing operational titles and aim to increase sales and profits
through contributions from new titles to be released in the future.
Media businessIn the media business, we are engaged in publishing and video production with the aim of owning, nurturing, andmonetizing IP. We publish monthly from our light novel label "DRE Novels" and comic label "DRE Comics."
Additionally, leveraging our expertise in internet services and advanced technologies, we offer new businessdevelopments in the Web3 domain, as well as fan marketing support services Rooot and Fanflu using social media,
and the load testing service Mx.Load.
Regarding net sales, there was an increase compared to the previous fiscal year due to the start of publications
from "DRE Novels" and "DRE Comics," as well as the sale of NFT collections for the blockchain game Eternal Crypt- Wizardry BC -, which is co-developed with another company.
As for profits, new business areas such as publishing, video, and Web3 are steadily progressing, but losses
increased from the previous fiscal year due to the ongoing cost pressures.
As a result, segment sales were 433,517 thousand yen (up 52.2% from the previous year) and segment loss was- 5 -993,611 thousand yen (segment loss of 621,957 thousand yen in the previous year). In this segment, we willcontinue to invest in achieving our medium-term goals.
Moving forward, in the gaming business, we will strive to establish a more robust business foundation by securinglong-term stable revenue through additional investments in operational titles and strengthening our systems.
Additionally, we aim for sales growth, and diversification and layering of revenue sources through the release of
new titles. We will also focus on developing original titles for PC and consoles with the goal of owning and nurturing
IP in the gaming business.
In the media business, we aim to grow the businesses we started with the goal of owning, nurturing, and monetizing
IP to a certain scale. Additionally, we will actively promote the use of advanced technologies that create newexperiences and markets.

(2) Summary of Financial Position
Assets, Liabilities and Net Assets(Assets)
Total assets amounted to 14,148,422 thousand yen at the consolidated fiscal year ended March 31, 2024, anincrease of 1,922,025 thousand yen from the end of the previous consolidated fiscal year. This was mainly due toan increase of 1,332,554 thousand yen in software in progress.
(Liabilities)
Total liabilities amounted to 8,480,298 thousand yen at the consolidated fiscal year ended March 31, 2024, anincrease of 1,885,021 thousand yen from the end of the previous consolidated fiscal year. This was mainly due toan increase of 2,637,650 thousand yen in bank loans, while accounts payable-trade and income taxes payable
decreased by 120,378 thousand yen and 420,081 thousand yen, respectively.
(Net assets)
Total net assets amounted to were 5,668,124 thousand yen at the consolidated fiscal year ended March 31,
2024, an increase of 37,003 thousand yen from the end of the previous consolidated fiscal year. This was mainly
due to the recording of 104,051 thousand yen in net income attributable to parent company shareholders.
As a result, the equity ratio was 39.7% (45.6% at the end of the previous consolidated fiscal year).
(3) Summary of cash flows
Cash and cash equivalents (“cash”) amounted to 5,932,836 thousand yen at the consolidated fiscal year ended
March 31, 2024, decreased by 107,610 thousand yen from end of the previous consolidated fiscal year. Cash andcash equivalents (hereinafter referred to as “Funds”) amounted to 5,932,836 thousand yen at the consolidated fiscal
year ended March 31, 2024, decreased by 107,610 thousand yen from the end of the previous consolidated fiscal
year. Cash flows and factors affecting cash flows in the consolidated fiscal year ended March 31, 2024 are as
follows.
(Cash flow from operating activities)
Net cash used in operating activities was 473,238 thousand yen. The main cash inflow was an impairment loss of
746,234 thousand yen, and the main cash outflows were an increase in trade receivables of 173,265 thousand yen,
an increase in consumption taxes receivable of 170,986 thousand yen, and income taxes paid of 782,828 thousand
yen.
(Cash flows from investing activities)
Net cash used in investing activities was 2,048,815 thousand yen. The main cash outflow was 2,006,279 thousand
yen for the purchase of intangible fixed assets.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 2,413,734 thousand yen. The main cash inflow was
4,586,000 thousand yen in proceeds from long-term loans payable, while the main cash outflows were 2,012,350
thousand yen in repayment of long-term loans payable and 145,077 thousand yen in cash dividends paid.

- 6 -(4) Future outlook
From the fiscal year ending March 31, 2025 onward, we will reframe our market as the entertainment content market andin response to thig globally expanding market, we aim to become a company that provides entertainment content centeredon IP x technology. Additionally, in the entire flow of "owning, nurturing, and monetizing IP," which is the business model ofthis market, we will organize the positioning of each area according to the characteristics of each business to determine thebusiness areas our company should focus on in the medium term.
In the mainstay game business, we will strive to establish a more robust business foundation by securing long-term stablerevenue through additional investments in operational titles and strengthening our systems. We also aim for sales growthand diversification and layering of revenue sources through the release of new titles. Furthermore, we will develop original
titles for PC and consoles with the goal of owning and nurturing IP in the gaming business.
In the media business, we aim to grow the following businesses to a certain scale: the publishing and video production
business, which was started with the goal of owning, nurturing, and monetizing IP, and the merchandising business, which
was started with the goal of nurturing and monetizing IP. In addition, given that entertainment has evolved by crossing withtechnology, we will actively promote the use of advanced technology to create new experiences and markets.
In the fiscal year ending March 31, 2025, we aim to secure long-term stable earnings from titles in operation in the gamebusiness, achieve sales growth through steady hits of newly released titles, and diversify and stack revenue sources. In the
media business, we aim to expand the scale of business by continuing to publish light novels and comics in the publishingand video business, which was launched for the purpose of holding, developing, and monetizing IP, and by quickly launching
the merchandise sales business, which was launched for the purpose of developing and monetizing IP. In addition, we aim
to expand the scale of our business by quickly launching a merchandise sales business, which was started for the purposeof developing and monetizing IP. In addition, we will aggressively pursue the ongoing development/provision of new services
that leverage the know-how and advanced technology of our existing businesses.
Based on the above, for the fiscal year ending March 31, 2025, we expect consolidated net sales of 13,500,000 thousand
yen, operating income of 1,000,000 thousand yen, ordinary income of 900,000 thousand yen, and net income attributable
to shareholders of the parent company of 400,000 thousand yen.

2. Basic approach to the selection of accounting standards
Most of the Group's stakeholders are domestic shareholders, creditors, business partners, etc. To ensure comparability
with other domestic companies in the same industry, Japanese GAAP is applied for accounting standards.

- 7 -3. Consolidated statements and key notes(1) Consolidated Balance Sheet(Unit: thousand yen)
Fiscal year ended
March 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable
Goods
Work in progress
Prepaid expenses
Other
Total current assets
Fixed assets
Tangible fixed assets
Building
Accumulated depreciation
Buildings, net
Tools, eqipments and fixtures
Accumulated depreciation
Tools, equipments and fixtures, net
Leased assets
Accumulated depreciation
Lease assets, net
Total tangible fixed assets
Intangible fixed assets
Software
Software in progress
Total intangible fixed assets
Investments and other assets
Investments in securities
Deferred tax asset(Security) deposit
Other
Total investments and other assets
Total fixed assets
Total assets- 8 -Fiscal year ended
March 31, 2024

6,044,573
1,484,658
5,268
17,482
148,928
147,482
7,848,394

5,937,126
1,657,924
7,990
44,689155,917563,215
8,366,863

191,229-31,029
160,200
85,502-53,143
32,358
7,232-3,107
4,125
196,683

191,229-48,741
142,488
87,906-68,350
19,555
7,232-4,2073,025
165,068

201,601
3,026,917
3,228,519

18,2794,359,472
4,377,751

59,926491,226
199,404
202,242
952,800
4,378,002
12,226,397

69,926650,038
199,404
319,369
1,238,738
5,781,559
14,148,422

(Unit: thousand yen)
Fiscal year ended
March 31, 2023
Liabilities
Current liabilities
Accounts payable
Short-term debt
Long-term debt due within one year
Lease obligations
Accounts payable
Accrued income taxes
Allowance for bonuses
Other
Total current liabilities
Fixed liabilities
Long-term debt
Lease obligations
Asset retirement obligations
Other
Total long-term liabilities
Total liabilities
Total net assets
Capital stock
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income (loss)
Net unrealized gains (loss) on available-forsale securities, net of taxes
Foreign exchange conversion adjustments
Total accumulated other comprehensive
income (loss)
Subscription warrant
Noncontrolling interest
Total net assets
Total liabilities and net assets- 9 -Fiscal year ended
March 31, 2024

449,977
100,000
1,780,750
1,281
554,851
481,316
129,549
802,766
4,300,494

329,599
100,000
1,743,850
1,281
604,044
61,23586,949621,140
3,548,100

1,952,750
3,524
100,000
238,5072,294,782
6,595,277

4,627,300
2,243
100,000
202,655
4,932,198
8,480,298

1,811,311
2,068,472
1,967,564-266,237
5,581,111

1,842,360
2,099,521
1,926,096-259,894
5,608,084-2,079

6,611

82

790

-1,997

7,402

49,067
2,938
5,631,120
12,226,397

49,067
3,570
5,668,124
14,148,422

(2) Consolidated statements of income and consolidated comprehensive income statements
Consolidated statement of income(Unit: thousand yen)
Fiscal year ended
March 31, 2023
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salary supplement
Provision for bonuses
Commission fee
Advertising expenses
R&D expenses
Other
Total selling, general and administrative
expenses
Operating income
Non-operating revenue
Interest received
Dividends received
Other
Total non-operating income
Non-operating expenses
Interest expense
Commission payable
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Impairment loss
Total extraordinary loss
Net income before taxes or net loss before
adjustments to taxes, etc.
Corporate, municipal and business taxes
Adjustment to corporate taxes, etc.
Total income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of the parent- 10 -

Fiscal year ended
March 31, 2024

10,800,257
6,242,019
4,558,237

9,779,099
6,374,197
3,404,901

504,516
106,357
120,582
208,520354,539982,367

536,598
53,003151,096
361,131
396,002
1,004,030

2,276,882

2,501,863

2,281,354

903,038

54
3,066
1,938
5,059

52
2,979
133
3,164

41,43747,673482
4,301
93,895
2,192,519

44,71464,213
1,321
2,782
113,032
793,171386,259
386,259746,234
746,234

1,806,259

46,936669,392-24,567
644,824
1,161,435
2,309
1,159,125

102,591-162,647-60,056
106,992
2,941
104,051

Consolidated statements of comprehensive income(Unit: thousand yen)
Fiscal year ended
March 31, 2023
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign exchange conversion adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income for ownersof parent
Comprehensive income fornon-controlling shareholders- 11 -

Fiscal year ended
March 31, 2024

1,161,435

106,992-2,087

8,691

82-2,005
1,159,430

708
9,399
116,392

1,157,120

113,450

2,309

2,941

(3) Consolidated statement of changes in net assets
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Unit: thousand yen)
Capital stock

Balance at the beginning of the period

CapitalCapitalsurplus1,792,991

2,050,152

18,32018,320Retainedearnings

Treasury
stock

Total
shareholders'equity953,681-274,029

4,522,796

Changes during the period
Issuance of new shares
Net income attributable to owners of the parent

36,6401,159,125

1,159,125

Acquisition of treasury stock

-24

-24

Disposal of treasury stock

7,816

7,816

Dividends from surplus-145,243

Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of the period-145,243

-

-

-

-

-

18,32018,3201,013,882

7,792

1,058,314

1,811,311

2,068,472

1,967,564-266,237

5,581,111

Accumulated other comprehensive
incomeUnrealized
gains (losses)
on availablefor-salesecurities

Balance at the beginning of the period

Other
Stock
Foreigncomprehensive acquisition
exchange
incomerightsconversion
cumulative
adjustments
total

7

-

7

49,067

Noncontrollinginterests

Total net
assets2,203

4,574,075

Changes during the period
Issuance of new shares

36,640Net income attributable to owners of the parent

1,159,125

Acquisition of treasury stock-24

Disposal of treasury stock

7,816

Dividends from surplus
Net changes of items other than shareholders'equity-145,243-2,08782-2,005-735-1,269Total changes of items during the period-2,08782-2,005-735

1,057,045

Balance at the end of the period-2,07982-1,99749,067

2,938

5,631,120- 12 -

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Unit: thousand yen)
Capital stock

Balance at the beginning of the period

CapitalCapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders'equity1,811,311

2,068,472

1,967,564-266,237

5,581,111

31,04831,048Changes during the period
Issuance of new shares
Net income attributable to owners of the parent

62,097104,051

Disposal of treasury stock

6,342

Dividends from surplus-145,518

Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of the period

104,051
6,342-145,518

-

-

-

-

-

31,04831,048-41,467

6,342

26,972

1,842,360

2,099,521

1,926,096-259,894

5,608,084

Accumulated other comprehensive
incomeUnrealized
gains (losses)
on availablefor-salesecurities

Balance at the beginning of the period

Other
Stock
Foreigncomprehensive acquisition
exchange
incomerightsconversion
cumulative
adjustments
total-2,07982-1,99749,067

Noncontrollinginterests

Total net
assets

2,938

5,631,120

Changes during the period
Issuance of new shares

62,097

Net income attributable to owners of the parent

104,051

Disposal of treasury stock

6,342

Dividends from surplus
Net changes of items other than shareholders'equity-145,518
8,691

708

9,399

-

631

10,031

Total changes of items during the period

8,691

708

9,399

-

631

37,003

Balance at the end of the period

6,611

790

7,402

49,067

3,570

5,668,124- 13 -

(4) Consolidated statements of cash flows(Unit: thousand yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Income before income taxes and minority
interests
Depreciation and amortization
Impairment loss
Stock compensation expense
Interest and dividend income
Commission fee
Interest expense
Decrease (increase）in notes and accounts
receivable-trade
Decrease (increase) in inventories
Decrease (increase) in consumption taxes
receivable
Decrease(increase) in prepaid expenses
Increase(decrease) in notes and accounts
payable-trade
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in advances received
Increase (decrease) in accrued bonuses
Increase (decrease) in accrued expenses
Other
SubtotalInterest and distributions received
Interest expenses paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments for acquisition of tangible fixed assets
Payments for acquisition of intangible fixed assets
Payments for acquisition of investment securities
Proceeds from collection of lease and guarantee
deposits
Payment for lease and guarantee deposits
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
Proceeds from long-term debt
Repayment of long-term debt
Payments for purchase of treasury stock
Dividends paid
Other
Cash flows from financing activities
Cash and cash equivalent exchange adjustment
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of year

- 14 -

Fiscal year ended
March 31, 2024

1,806,259

46,936269,275
386,259
40,728-3,12147,67341,437

144,830
746,234
49,011-3,031
61,97044,714658-173,265-12,725-29,839

162,542-170,986

3,257

3,804

92,113-120,378-12,938

49,192

26,595-52,935

207,569536
24,088-47,015
3,033,198
5,112-37,856-334,675
2,665,778

25,711-42,600-159,349-70,871
349,147
3,979-43,536-782,828-473,238-21,288-2,005,229-59,920-2,404-2,006,279-10,000

118,734--1,000-48,479-2,017,183-10-30,122-2,048,815-46,000
2,552,958-1,688,500-24-144,781-14,818
658,83382
1,307,511
4,732,985
6,040,496

4,586,000-2,012,350-145,077-14,838
2,413,734
708-107,610
6,040,496
5,932,886

(5) Notes to consolidated financial statements(Notes on premise of a going concern)
Nothing applicable.
(Change in accounting policy)
Nothing applicable.
(Information by segment, etc.)【Segment information】
1. Overview of reportable segments
The Company’s reportable segments are components of the Company for which separate financial information isavailable and are subject to periodic review by the Board of Directors to make decisions about the allocation ofmanagement resources and evaluating performance. Accordingly, our company consists of segments categorized byservice, and we have two reportable segments: the "Game business" and the "Media business."
The "Game business" primarily involves the planning, development, and operation of games played on smartphones.
The "Media business" encompasses the publication and sale of books, such as novels and comics, as well as
electronic books. Additionally, leveraging the know-how and cutting-edge technology our company has cultivated over
the years, we are committed to creating new businesses that will drive our company's medium- to long-term growth.
2. Calculation method for the amount of net sales, income or loss, assets, liabilities and other items by reportablesegment
Income by reportable segment is based on operating income.
Intersegment transactions and transfers are based on prevailing market prices.
3. Information on net sales, income or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Unit: thousand yen)
Reporting Segment
GamebusinessMediabusiness

Adjustment
Total

*1

Amountrecorded inconsolidated
financialstatements*2

Sales
Sales to external customers

10,517,071

283,185

10,800,257-

10,800,257

-

1,650

1,650

-1,650-10,517,071

284,835

10,801,907-1,65010,800,257

Segment income or loss

2,903,312-621,957

2,281,354-

2,281,354

Segment assets

5,257,941

242,456

5,500,398

6,725,999

12,226,397

236,283

1,880

238,163

31,112

269,275

386,259-

386,259-

386,259

1,992,925

16,5372,009,463

18,3352,027,799

Intersegment sales andtransfers
Total

Other Items
Depreciation andamortization
Impairment loss
Increase in Tangible andIntangible Fixed Assets
Note:*1 Adjustment amount for segment assets mainly consists of cash and deposits, deferred tax assets, and tangible
fixed assets that do not belong to the reportable segments.
*2. Segment income (loss) is consistent with operating income in the consolidated statements of income.

- 15 -

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Unit: thousand yen)
Reporting Segment
Gamebusiness

Adjustment

Mediabusiness

Total

*1

Amountrecorded inconsolidated
financialstatements*2

Sales
Sales to external customers

9,349,181

429,917

9,779,099-

9,779,099

-

3,600

3,600

-3,600-9,349,181

433,517

9,782,699-3,6009,779,099

Segment income or loss

1,896,650-993,611

903,038-

903,038

Segment assets

6,978,062

405,614

7,383,676

6,764,745

14,148,422

Depreciation andamortization

109,492

11,163

120,655

24,175

144,830

Impairment loss

609,185

137,048746,234-

746,234

1,876,201

133,436

2,009,637

15,0452,024,682

Intersegment sales andtransfers
Total

Other Items

Increase in Tangible andIntangible Fixed Assets
Note:*1 Adjustment amount for segment assets mainly consists of cash and deposits, deferred tax assets, and tangible
fixed assets that do not belong to the reportable segments.
*2. Segment income (loss) is consistent with operating income in the consolidated statements of income.

[Related Information]
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
1. Information by product and service
This information is omitted because the same information is disclosed in the segment information.
2. information by region(1) Sales
This information is omitted because sales to external customers in Japan account for more than 90% of the net sales
in the consolidated statements of income.
(2) Tangible fixed assets
The amount of fixed tangible assets in Japan exceeds 90% of the fixed tangible assets on the consolidated balance
sheet, so this information is omitted.
3. Information by major customer(Unit: thousand yen)
Name or title of customer

Net sales

Related Segment Name

Bandai Namco Entertainment Inc.

4,372,063

Game business, Media business

Bandai Namco Nexus Inc.

1,543,257

Game businessApple Inc.

1,487,120

Game business- 16 -

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
1. Information by product and service
This information is omitted because the same information is disclosed in the segment information.
2. information by region(1) Sales
This information is omitted because sales to external customers in Japan account for more than 90% of the net sales
in the consolidated statements of income.
(2) Tangible fixed assets
The amount of fixed tangible assets in Japan exceeds 90% of the fixed tangible assets on the consolidated balance
sheet, so this information is omitted.
3. Information by major customer(Unit: thousand yen)
Name or title of customer

Net sales

Related Segment Name

Bandai Namco Entertainment Inc.

4,130,073

Game business, Media businessApple Inc.

1,492,945

Game business

Bandai Namco Nexus Inc.

1,206,557

Game business[Information on Impairment Losses on Fixed Assets by reportable segment]
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Unit: thousand yen)Game businessImpairment loss

Corporate andelimination

Media business

386,259

-

Total
-

386,259

Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Unit: thousand yen)Game businessImpairment loss

Media business

609,185

Corporate andelimination

137,048[Information on amortization and unamortized balance of goodwill by reportable segment]
Fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Not applicable
Fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
Not applicable[Information on gain on negative goodwill by reportable segment]
Not applicable- 17 -

Total-

746,234

(Per share data)
Fiscal year ended
March 31, 2023
(April 1, 2022 to March 31, 2023)

Fiscal year ended
March 31, 2024
(April 1, 2023 to March 31, 2024)

Net assets per share

195.70 yen

196.29 yen

Net income per share

40.70 yen

3.64 yen

Diluted net income per share

40.62 yen

3.64 yen

Note: 1. Basis for calculation of net income per share and diluted net income per share is as follows.
Fiscal year ended
March 31, 2023
(April 1, 2022 to March 31, 2023)

Fiscal year ended
March 31, 2024
(April 1, 2023 to March 31, 2024)

Net income per share
Net income attributable to owners of the parent(thousand yen)

1,159,125

Amount not attributable to commonshareholders (thousand yen)

104,051-

Net income attributable to parent company
shareholders related to common stock(thousand yen)

1,159,125

104,051

Average number of shares of common stockduring the period (shares)

28,482,068

28,570,583--

51,13852,440（51,138）（52,440）

Diluted net income per share
Adjustment of net income attributable toowners of the parent (thousands of yen)
Increase in common stock (shares)(of which stock acquisition rights (shares))
Summary of potential stock not included in thecalculation of diluted net income per share due tothe absence of dilutive effects-- 18 --

2. Basis for calculation of net assets per share is as follows
Fiscal year ended
March 31, 2023

Total net assets (thousands of yen)

Fiscal year ended
March 31, 2024

5,631,120

5,668,124

Amount deducted from total net assets(thousand yen)

52,00652,637(of which stock acquisition rights (thousand yen))(49,067)(49,067)(of which, noncontrolling interests (thousandyen))(2,938)(3,570)Net assets related to common stock at the end of
the period (thousand yen)

5,579,114

5,615,486

Number of shares of common stock used in thecalculation of net assets per share at the end of
the fiscal year (shares)

28,507,996

28,608,413

3. The number of the Company's shares held by the ESOP Trust Account, which are recorded as treasury stockin shareholders' equity, is included in the number of treasury stock deducted from the average number ofshares during the period for the calculation of net income per share (601,314 shares in the consolidated fiscal
year ended March 31,2023 and 586,074 shares in the consolidated fiscal year ended March 31,2024). Also, inthe calculation of net assets per share, the number of treasury stock is included in the number of sharesdeducted from the total number of shares issued and outstanding at the end of the period (595,800 shares in
the consolidated fiscal year ended March 31,2023 and 581,600 shares in the consolidated fiscal year ended
March 31,2024).
(Significant Subsequent Events)
Not applicable

4. Other
Not applicable- 19 -