Worth reading
85Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
4000
¥100 million (consolidated net sales target for the fiscal year ending March 2032)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.2%
基準 2,028Target2,032Hundred millions of yen
Operating profit+0.2%
基準 2,028Target2,032Hundred millions of yen
Operating profit margin+4.0pt
基準 2,028Target2,032%
ROE+6.0pt
基準 2,026Target2,032%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNet sales of ¥340.0 billion and operating income of ¥34.0 billion (fiscal year ending March 2028; current medium-term plan targets) → Net sales of ¥325.0 billion and operating income of ¥13.0 billion (forecast for the fiscal year ending March 2028)（Net sales: down 4.4%; operating income: down 61.8%）0.0%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyThe target is a dividend payout ratio of at least 30%, with an annual dividend per share floor of ¥30. The company aims for a total payout ratio of at least 50% over the medium to long term. The applicable period is the medium to long term and the period covered by the new medium-term management plan. DOE: Not disclosedThe payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyShare repurchases will be conducted flexibly, taking into account investment capacity and the share price level. The company will consider and conduct repurchases in line with the recovery in earnings.
Key initiatives
01Structural reform of the domestic publishing business
02Expand the business foundation by further strengthening the lineup
03Strengthen group studios to establish a production system capable of consistently creating high-quality works
04Establish and strengthen diverse revenue sources
05Maximize IP value through collaboration across businesses
06Strengthen digital services and marketing
07Publishing manufacturing and distribution DX project
08Pursue selective investment and concentration through more sophisticated and rigorous investment management
09KADOKAWA Creators
10Studio One Base project
Plan assumptionsThe government's goal of increasing overseas sales of Japan-originated content to ¥20 trillion by 2033, A shift to a business model premised on low growth and contraction in the domestic market, Continued expansion of the global entertainment market and demand for anime IP, Rising production, raw material and transportation costs, Technological innovation, including generative AI
Segment targetSegment Publishing and IP Creation / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Anime and Live-Action Video / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Games / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Web Services / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Education and EdTech / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Other / Sales Target Not disclosed / Operating profit target Not disclosed
Non-financial targetsIndicator Number of new titles published / Target To remain at approximately 98% of the previous year's level from the fiscal year ending March 2027 onward / Timing From the fiscal year ending March 2027 onward, Indicator Return rate for physical books / Target 25.0% / Timing Fiscal year ending March 2032, Indicator In-house anime production ratio / Target 50.0% / Timing Fiscal year ending March 2032, Indicator Revenue from secondary anime exploitation / Target 1.9 times the level in the fiscal year ending March 2026 by the fiscal year ending March 2032 / Timing Fiscal year ending March 2032, Indicator Overseas Revenue Mix / Target 25.0% / Timing Fiscal year ending March 2032, Indicator Percentage of Female Managers / Target 30% / Timing FY ending March 2031, Indicator Utilization rate of professional certification programs (excluding language certifications) / Target 15% / Timing FY ending March 2031, Indicator FA program utilization rate / Target 70% / Timing FY ending March 2031, Indicator Percentage of employees holding language certifications / Target 10% / Timing Fiscal year ending March 2034, Indicator GHG emissions, Scope 1 and 2 / Target 50% reduction from the fiscal year ending March 2021 / Timing FY ending March 2031, Indicator GHG emissions, Scope 1 and 2 / Target Net zero / Timing Fiscal year ending March 2051, Indicator Ratio of independent outside directors / Target Maintain a majority / Timing Plan period, Indicator Compliance training completion rate / Target 100% / Timing Plan period
Size of the Target MarketOverseas sales of Japan-originated content totaled ¥6 trillion as of 2024, while the government's target is ¥20 trillion in 2033. Sources: Japan and Global Media × Content Market Database, published by Humanmedia, Inc., and materials from the Ministry of Economy, Trade and Industry's Entertainment and Creative Industries Policy Study Group
Risks identified by the company
Intensifying competition to secure leading source material
Intensifying competition to secure anime production capacity
Rising production, raw material and transportation costs
Talent Shortage
Competition among platforms and IP lock-in
Low growth and contraction in the domestic publishing market
Increasing concentration of top mobile game titles and higher barriers to entry
Responding to technological innovation, including generative AI
Cyberattacks and Information Security Threats
Deterioration in profitability from continuing unprofitable businesses and projects
Reason for revision or withdrawal
Although overseas publishing, Web services and education/EdTech grew faster than planned, profits in the domestic publishing and anime businesses declined unexpectedly. In light of these changes in the operating environment, the company decided to review the current plan and formulate a new medium-term management plan
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan: Fiscal Years Ending March 2027–March 2032 (New Medium-Term Management Plan) |
| Plan period | Fiscal years ending March 2027 through March 2032 (6 years) |
| Progress against the plan | Formulated |
| Sales Target | ¥340.0 billion (fiscal year ending March 2028; current medium-term plan target) → ¥400.0 billion (fiscal year ending March 2032; final-year target under the new medium-term plan)（Down 4.4% versus the fiscal year ending March 2028. No comparison is available for the fiscal year ending March 2032） |
| Operating profit target | ¥34.0 billion (fiscal year ending March 2028; current medium-term plan target) → ¥38.0 billion (fiscal year ending March 2032; final-year target under the new medium-term plan)（Down 61.8% versus the fiscal year ending March 2028. No comparison is available for the fiscal year ending March 2032） |
| Operating profit margin target | 10.0% (fiscal year ending March 2028; current medium-term plan target) → 9.5% (fiscal year ending March 2032; final-year target under the new medium-term plan) |
| ROE target | 0.5% (actual for the fiscal year ending March 2026) → 9.4% (target for the fiscal year ending March 2032)（Approximately 1,780%） |
| Payout ratio / DOE policy | The target is a dividend payout ratio of at least 30%, with an annual dividend per share floor of ¥30. The company aims for a total payout ratio of at least 50% over the medium to long term. The applicable period is the medium to long term and the period covered by the new medium-term management plan. DOE: Not disclosed |
| Treasury share acquisition policy | Share repurchases will be conducted flexibly, taking into account investment capacity and the share price level. The company will consider and conduct repurchases in line with the recovery in earnings. |
| Segment target | Segment Publishing and IP Creation / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Anime and Live-Action Video / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Games / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Web Services / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Education and EdTech / Sales Target Not disclosed / Operating profit target Not disclosed, Segment Other / Sales Target Not disclosed / Operating profit target Not disclosed |
| Non-financial targets | Indicator Number of new titles published / Target To remain at approximately 98% of the previous year's level from the fiscal year ending March 2027 onward / Timing From the fiscal year ending March 2027 onward, Indicator Return rate for physical books / Target 25.0% / Timing Fiscal year ending March 2032, Indicator In-house anime production ratio / Target 50.0% / Timing Fiscal year ending March 2032, Indicator Revenue from secondary anime exploitation / Target 1.9 times the level in the fiscal year ending March 2026 by the fiscal year ending March 2032 / Timing Fiscal year ending March 2032, Indicator Overseas Revenue Mix / Target 25.0% / Timing Fiscal year ending March 2032, Indicator Percentage of Female Managers / Target 30% / Timing FY ending March 2031, Indicator Utilization rate of professional certification programs (excluding language certifications) / Target 15% / Timing FY ending March 2031, Indicator FA program utilization rate / Target 70% / Timing FY ending March 2031, Indicator Percentage of employees holding language certifications / Target 10% / Timing Fiscal year ending March 2034, Indicator GHG emissions, Scope 1 and 2 / Target 50% reduction from the fiscal year ending March 2021 / Timing FY ending March 2031, Indicator GHG emissions, Scope 1 and 2 / Target Net zero / Timing Fiscal year ending March 2051, Indicator Ratio of independent outside directors / Target Maintain a majority / Timing Plan period, Indicator Compliance training completion rate / Target 100% / Timing Plan period |
| Plan assumptions | The government's goal of increasing overseas sales of Japan-originated content to ¥20 trillion by 2033, A shift to a business model premised on low growth and contraction in the domestic market, Continued expansion of the global entertainment market and demand for anime IP, Rising production, raw material and transportation costs, Technological innovation, including generative AI |
| Key initiatives | Structural reform of the domestic publishing business, Expand the business foundation by further strengthening the lineup, Strengthen group studios to establish a production system capable of consistently creating high-quality works, Establish and strengthen diverse revenue sources, Maximize IP value through collaboration across businesses, Strengthen digital services and marketing, Publishing manufacturing and distribution DX project, Pursue selective investment and concentration through more sophisticated and rigorous investment management, KADOKAWA Creators, Studio One Base project |
| Results under the previous plan | Net sales of ¥340.0 billion and operating income of ¥34.0 billion (fiscal year ending March 2028; current medium-term plan targets) → Net sales of ¥325.0 billion and operating income of ¥13.0 billion (forecast for the fiscal year ending March 2028)（Net sales: down 4.4%; operating income: down 61.8%） |
| Reason for revision or withdrawal | Although overseas publishing, Web services and education/EdTech grew faster than planned, profits in the domestic publishing and anime businesses declined unexpectedly. In light of these changes in the operating environment, the company decided to review the current plan and formulate a new medium-term management plan |
| Size of the Target Market | Overseas sales of Japan-originated content totaled ¥6 trillion as of 2024, while the government's target is ¥20 trillion in 2033. Sources: Japan and Global Media × Content Market Database, published by Humanmedia, Inc., and materials from the Ministry of Economy, Trade and Industry's Entertainment and Creative Industries Policy Study Group |
| Risks identified | Intensifying competition to secure leading source material, Intensifying competition to secure anime production capacity, Rising production, raw material and transportation costs, Talent Shortage, Competition among platforms and IP lock-in, Low growth and contraction in the domestic publishing market, Increasing concentration of top mobile game titles and higher barriers to entry, Responding to technological innovation, including generative AI, Cyberattacks and Information Security Threats, Deterioration in profitability from continuing unprofitable businesses and projects |
Items this document does not state (8)
Net income targetROIC targetCost of capitalSelf-assessment of PBR and share priceTotal investment planInvestment amount by sectorDate of board resolutionPublication date
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Although overseas publishing, Web services and education/EdTech grew faster than planned, profits in the domestic publishing and anime businesses declined unexpectedly, making it difficult to achieve the targets of the current medium-term management plan. The plan also reflects changes in the operating environment, including intensified competition to secure leading source material and anime production capacity, as well as rising production costs.
How to read this page
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