Slide 1: FY03/2026 3Q Financial Results Presentation
FY03/2026 3Q Financial Results Presentation Drecom Co., Ltd. January 29, 2026 "Thou Shalt Love thy Unwise King" ranked No. 1 in the [New Standalone Books & Novels Category] in “This Light Novel Is Amazing! 2026” (Takarajimasha) (November 25, 2025) For information on the consolidated performance tren
Slide 2: Summary of this document
Summary of this document • Record-high quarterly net sales. Operating profit and ordinary profit turned positive on a cumulative basis through 3Q . FY03/2026 - 3Q results: Net sales ¥5,062 million (+34.2% QoQ), Operating profit ¥671 million (previous quarter: ¥-493 million) 3Q Results EBITDA*2 ¥894
Slide 3: Agenda
1. FY03/2026 3Q Financial Results Overview 2. Forecast for FY03/2026 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 3
Slide 4: FY03/2026 3Q Financial Results Summary
1. FY03/2026 3Q Financial Results Overview FY03/2026 3Q Financial Results Summary Record-high sales on a quarterly basis. Operating profit and Ordinary profit turned positive in the cumulative total for 3Q. FY03/2026 FY03/2025 3Q Total 1Q 2Q 3Q Total YoY (Unit: Million Yen) QoQ （Oct– YoY （Apr– (Apr–
Slide 5: Quarterly Performance Trends
1. FY03/2026 3Q Financial Results Overview FY03/2026 3Q Performance Summary: Quarterly Performance Trends "Wizardry Variants Daphne" marked its 1st anniversary, and net sales reached a record-high ¥5 billion for the quarter. (Unit: ¥ million) 5,062 4,454 4,466 4,182 3,771 2,745 2,546 2,346 2,141 2,1
Slide 6: Profit and Loss of Titles in Operation
1. FY03/2026 3Q Financial Results Overview FY03/2026 3Q Financial Summary: Profit and Loss of Titles in Operation Increased profit due to contributions from key titles and reduced deficits of unprofitable titles Business Profit and Loss of 11 Titles in Operation (Total) Profit Loss Reducing the defi
Slide 7: 3Q Operating Profit (QoQ, by Expense Type)
1. FY03/2026 3Q Financial Results Overview FY03/2026 3Q Operating Profit (QoQ, by Expense Type) With no temporary factors such as costs associated with launching new titles in 1Q or fraudulent billing and strengthened promotion in 2Q, the cost structure has normalized. Decrease in revenue (increase
Slide 8: Status of each business segment
1. FY03/2026 3Q Financial Results Overview FY03/2026 3Q: Status of each business segment • "Wizardry Variants Daphne": In 3Q, initiatives were implemented to maximize the anniversary event. • 3Q sales 2.16 billion yen → 4Q sales 2.48 billion yen → 1Q sales 2.30 billion yen → 2Q sales 2.05 billion ye
Slide 9: Agenda
1. FY03/2026 3Q Financial Results Overview 2. Forecast for FY03/2026 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 9
Slide 10: Overview and Progress of FY03/2026 Full-Year Forecast
2. Forecast for FY03/2026 Overview and Progress of FY03/2026 Full-Year Earnings Forecast 3Q proceeded smoothly. In 4Q as well, we will continue to aim to achieve forecasts through the addition of languages and cost optimization. Forecast for FY03/2026 (Reference) 1Q 2Q 3Q Total Revised Full- Mar 202
Slide 11: Progress Outlook from 4Q Onward
2. Forecast for FY03/2026 Progress Outlook from FY03/2026 4Q Onward We aim to achieve the full-year forecast through measures such as adding new languages and collaboration events, as well as cost optimization to reduce fixed expenses. ・ Net sales ： In 4Q, further additions of supported languages an
Slide 12: Fixed Cost Trends from 4Q Onward
2. Forecast for FY03/2026 Fixed Cost Trends from FY03/2026 4Q Onward Fixed cost levels normalized in 3Q. Advertising placements will be implemented flexibly while assessing the situation and effectiveness. 83% 79% 71% 68% 68% 65% 64% Marginal Profit Rate (Unit: ¥ million) 31 25 41 16 52 750 600 743
Slide 13: Agenda
1. FY03/2026 3Q Financial Results Overview 2. Forecast for FY03/2026 3. Medium-Term Goals 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 13
Slide 14: Medium-Term Goals and Progress
3.Medium-Term Goals Medium-Term Goals and Progress Progress in transforming into a company that globally provides entertainment content centered on IP and technology Drecom Progress in FY03/2026 Medium-term goals up to now "Wizardry Variants Daphne" 1st Anniversary & Game Korea Launch Entertainment
Slide 15: Objectives and Main Initiatives by Business Area
3. Medium-Term Goals The objectives and main initiatives of each business area centered on IP The rapid realization of IP ownership, development, and monetization through collaboration across our company's various business domains. Major Initiatives Own IP Growing IP Monetize IP 1) Mobile games ・"Wi
Slide 16: Case: IP strategy centered around the Wizardry brand
3. Medium-Term Goals Case: IP strategy centered around the "Wizardry" brand After acquiring partial rights to a popular work, revive dormant fans and attract new ones through various developments, expanding the economic scale. "Wizardry" Brand Expansion Map PC and console games Merchandising, etc. N
Slide 17: Case: Progress in the Publishing and Anime Business Domain
3. Medium-Term Goals Case: Progress in the Publishing and Anime Business Domain In the publishing sector, the creation of popular series is steadily advancing, and a system to seamlessly develop them into anime has been established. Own IP Growing IP Monetize IP Publication (comics, novels, webtoon)
Slide 18: Case: Progress in the Publishing and Anime Business Domain
3. Medium-Term Goals Case: Progress in the Publishing and Anime Business Domain Won first place in the [New Single-Volume Books / Novels Category] in “This Light Novel Is Amazing! 2026” (Takarajimasha) Novel"Thou Shalt Love thy Unwise King" Publication Information Author / Kentaro Honjo Illustration
Slide 19: Case: Progress in the Publishing and Anime Business Domain
3. Medium-Term Goals Case: Progress in the Publishing and Anime Business Domain In 4Q, an anime based on an in-house published work began broadcasting. We strengthened our comic production structure and plan to increase the number of comic titles from the next fiscal year onward. Sales Trends in Pub
Slide 20: Case: Progress in the Publishing and Anime Business Domain
3. Medium-Term Goals Case: Progress in the Publishing and Anime Business Domain The TV anime ”The Holy Grail of Eris" will begin nationwide broadcast from January 2026 on 28 TBS-affiliated stations and BS11. • ”The Holy Grail of Eris" is a smash-hit suspense fantasy about a noble young lady, with th
Slide 21: Mid-term growth outlook
3. Medium-Term Goals Mid-term growth outlook Returning to the growth trajectory, continuing and expanding investments for the next stage of growth, aiming for a positive cycle that balances growth and profitability. FY03/2025 FY03/2026 (Forecast) FY03/2027 to FY03/2028 Sales: ¥12.6 billion Sales: ¥1
Slide 22: 4. Appendix
1. 2026年3⽉期 第3四半期 業績概況 2. 2026年3⽉期 通期業績予想 3. 中期的に⽬指す姿 4. Appendix Copyright Drecom Co., Ltd. All Rights Reserved. 22
Slide 23: Entertainment Content Market Status (Japan/International)
3. Appendix Entertainment Content Market Status (Japan/International) The spread of video streaming services and digital distribution has led to a significant global increase in the popularity of Japanese content, particularly anime and PC/console games. The market size of Japanese content has surpa
Slide 24: Global Gaming Market Overview
4. Appendix Global Gaming Market Overview The global game market grew at a CAGR of 9% from 2011 to 2023. The PC and console game markets are growing steadily, while the mobile game market has entered a mature phase. We are expanding not only in the mobile game market but also across the entire game
Slide 25: Overview of the Comic Market and Our Strengths
4. Appendix Overview of the Comic Market and Our Characteristics/Strengths The comic market has significantly grown due to the spread of digital formats. Our company achieved an early business launch, led primarily by industry experts. Trends in the Comic Market Size Competitive Environment of the C
Slide 26: Overview of the Anime Market and the Company's Strengths
4. Appendix Overview of the Anime Market and the Company's Features and Strengths The anime market has grown, driven primarily by overseas sales due to the spread of streaming services. Our company's strength lies in diverse monetization through media mix strategies. Transition of the Anime Market S
Slide 27: Our Strengths and Competitive Advantages
4. Appendix Our Strengths and Competitive Advantages In the expanding entertainment content market presenting increased opportunities, we aim to enter the field by leveraging our strengths, despite being a latecomer, and pursue sustainable growth and enhancement of corporate value. ■ Utilizing techn
Slide 28: Gaming Business: Pipeline of Operated Titles and Titles in Development
4. Appendix Gaming Business: Pipeline of Operated Titles and Titles in Development Number of projects by status and trends Business Status Definition Number of Projects・Details Operational titles under Existing Operational ➢Other company's distribution: 4 titles Titles long-term stable management 9
Slide 29: Game Business: Revenue trends of titles in operation
4. Appendix Game Business: Revenue trends of titles in operation (by release period) FY03/2011 FY03/2014 FY03/2015 FY03/2016 FY03/2017 FY03/2018 FY03/2019 FY03/2020 FY03/2022 FY03/2023 FY03/2024 FY03/2025 Profit Loss 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 20
Slide 30: Gaming Business: Key Services
4. Appendix Gaming Business: Key Services Operating 11 mobile games, primarily featuring popular IP titles. Also engaged in PC and console game development. Published by BANDAI NAMCO Entertainment Inc. • "ONE PIECE Treasure Cruise" (May 2014) • "THE IDOLM@STER SHINYCOLORS" (April 2018) • "Super Robo
Slide 31: Content Business: Main Services
4. Appendix Content Business: Main Services Established publishing, anime, and MD businesses with the aim of owning and developing IP. Invested in the creation of new businesses. Publishing Business MD (Merchandising) Business Comic・ Novel Merchandizing Event Hosting Anime Business Utilization of Te
Slide 32: Fact sheet reference and forward-looking statements
For details on trends in consolidated performance, cost and SG&A expenses, and billing revenue for the game business, please refer to the fact sheet available on our website. https://drecom.co.jp/ir/factsheet_2026033Q.pdf The perspectives, strategies, and plans outlined in this document are forward-