Slide 1: Financial Results Briefing Material
Financial Results Briefing Material For Fiscal Year Ended March 31, 2024 (April 1, 2023, to March 31, 2024) Toei Animation Co., Ltd.
Slide 2: Contents
Contents 01. Financial Results for FY2024.3 02. Outlook for FY2025.3 03. Future Business Prospects
Slide 3: 01. Financial Results for FY2024.3
01. Financial Results for FY2024.3
Slide 4: Financial Results Summary
Financial Results Summary ◼ Net sales renewed the record for the full year; operating income reached the second-highest level ◼ Sales of Goods and overseas streaming rights were the performance drivers supported by the increase in IP values for “SLAM DUNK” and “ONE PIECE”, which have further increas
Slide 5: Year-on-Year Changes
Year-on-Year Changes ◼ Net sales saw strong performances in the Sales of Goods Business and Other, but revenues declined for the Film and Licensing Businesses due to the reactionary decline from the strong sales from the three major movie titles released in the same period of the previous fiscal yea
Slide 6: FY2024.3 Results Segment Breakdown - Consolidated
FY2024.3 Results Segment Breakdown - Consolidated ◼ The Film segment saw a decrease in revenue due to the reactionary decline from the three major movie titles despite the strong performance of overseas distribution rights. Income declined due to the recording of losses on valuation related to “Knig
Slide 7: FY2024.3 Results Segment Analysis (1) Film
FY2024.3 Results Segment Analysis (1) Film FY23.3 FY24.3 Film ( -6.5％ year on year) (Million Yen) Results Results • In the Movies segment, revenues decreased significantly as the strong performance by “Pretty Cure Net Sales 87,457 88,654 All Stars F” and “Kitaro Tanjou: GeGeGe no Nazo” did not reach
Slide 8: Trends in Film Overseas
Trends in Film Overseas ◼ Revenues decreased in North America due to the reactionary decline in the sales of theatrical screening rights of the movie “Dragon Ball Super: SUPER HERO,” but sales of distribution rights for “THE FIRST SLAM DUNK” was strong in Asia. ◼ Sales of theatrical screening rights
Slide 9: Film Business: Topics
Film Business: Topics “The Birth of Kitaro: “THE FIRST SLAM DUNK” “Pretty Cure All Stars F the Movie” The Mystery of GeGeGe” • Box-office revenue in Japan exceeded ¥2.7 billion • Global box-office revenue ¥38.3 billion (final) • Box-office revenue in Japan exceeded ¥1.5 billion • Number of audience
Slide 10: FY2024.3 Results Segment Analysis (2) Licensing, Sale of Goods, Others
FY2024.3 Results Segment Analysis (2) Licensing, Sale of Goods, Others Licensing ( -5.7％ year on year） FY23.3 FY24.3 (Million Yen) • In domestic licensing, revenues remained flat despite the Results Results strong performance of the merchandising rights for “ONE PIECE” due to the performance of the
Slide 11: Trends in Domestic Licensing
Trends in Domestic Licensing ◼ “ONE PIECE” is exceeding the performance of the previous fiscal year due to the strong performance of the merchandising rights driven by card games, despite the sales of game development rights not reaching the momentum of the previous year when the movie was a big hit
Slide 12: Trends in Overseas Licensing
Trends in Overseas Licensing ◼ In Europe, sales were strong mainly for merchandising rights due to increased recognition for “ONE PIECE.” Revenues decreased in North America due to the sales of merchandising rights for the “Dragon Ball” and “Digimon” series not reaching the momentum of the previous
Slide 13: Licensing, Sale of Goods, Others Businesses: Topics
Licensing, Sale of Goods, Others Businesses: Topics Japan Overseas Sale of Goods ONE PIECE Bounty Rush Dragon Ball Z: Dokkan Battle Mugiwara Store (Ikebukuro store) Ichibankuji ONE PIECE Four Emperors ONE PIECE CARD GAME Precure Pretty Store (Osaka store) 13
Slide 14: FY2024.3 Results Review
FY2024.3 Results Review ◼ Sales renewed record high for the full year driven by the Sales of Goods Business and overseas distribution rights. ◼ Operating income declined due to the recording of losses on valuation of inventories related to “Knights of the Zodiac” in 1Q, but operating income achieved
Slide 15: Balance Sheet Digest
Balance Sheet Digest ◼ Significant decrease in finished works due to the recording of valuation losses for “Knights of the Zodiac” in 1Q. ◼ Non-current assets increased due to recording of gains on valuation of investment securities. ◼ Equity ratio of 80.9%, securing a stable financial base. (Millio
Slide 16: 02. Outlook for FY2025.3
02. Outlook for FY2025.3
Slide 17: Earnings Estimates for FY2025.3 - Consolidated
Earnings Estimates for FY2025.3 - Consolidated Results Estimates (Million Yen) % Change FY2021.3 FY2022.3 FY2023.3 FY2024.3 FY2025.3 Net Sales 51,595 57,020 87,457 88,654 82,000 △7.5% SG&A 7,436 8,585 12,296 14,085 15,500 10.0% Operating 15,503 18,107 28,669 23,364 20,000 △14.4% Income Ordinary 16,0
Slide 18: Earnings Estimates for FY2025.3: Segment Breakdown
Earnings Estimates for FY2025.3: Segment Breakdown Film ( - 11.9% from FY24.3) • Revenues from movies are likely to decrease significantly with no large titles to be released. • Revenues from TVs are likely to increase with the release of FY24.3 FY25.3 new titles including “Dragon Ball DAIMA” and “G
Slide 19: Capital Allocation Policy and Dividends
Capital Allocation Policy and Dividends ◼ Maintain solid financial base while actively making strategic investments for medium- to long-term growth and shareholder returns. ◼ For FY2024.3, maintain 155 yen per share (before stock split), the equivalent dividend payment as the previous period. ◼ For
Slide 20: 03. Future Business Prospects
03. Future Business Prospects
Slide 21: Understanding of External Environment and Growth Strategy
Understanding of External Environment and Growth Strategy External environment Growth strategy Global Animation Market Size for (1) Expansion to CY2030 (*1) global markets Export business International sales of leading library titles ¥8.6 trillion Global Animation Market Size for ¥5.7 trillion CY202
Slide 22: Title Development Strategy (1) Overseas Strategy (Export-Business)
Title Development Strategy (1) Overseas Strategy (Export-Business) Export popular Japan-generated IP to suitable countries and regions Export Aiming to expand fan base and business increase customer contact at the same time to create a virtuous Announced construction of world-first “Dragon cycle
Slide 23: Title Development Strategy (1) Overseas Strategy (Hollywood-style, local production for local consumption)
Title Development Strategy (1) Overseas Strategy (Hollywood-style, local production for local consumption) By utilizing our global distribution Local Hollywood- production Collaborate with local partners to enter network, we launch works planned style for local specific country/region and create IP
Slide 24: Title Development Strategy (2) Correspond to new content
Title Development Strategy NFT (2) Correspond to new content Multi-platform AI 電殿神伝-DenDekaDen- Start services using NFTs Introduce blockchain technology to creating IP titles Dragon Ball Super and Fortnite Collaboration Enjoy Dragon Ball inside the popular game “Fortnite” Metaverse OTT Platform VR
Slide 25: Title Portfolio
Title Portfolio FY2024~ Overseas market About 10 titles / ¥13.3 billion About 17 titles / ¥12.2 billion • Large-scale projects targeting Hollywood • Large IP projects • High-end CG projects Existing New/ Library About 23 titles / ¥12.0 billion About 18 titles / ¥5.0 billion • Projects for kids • Pro
Slide 26: Initiatives Aimed for Medium- to Long-Term Growth (Development of Titles)
Initiatives Aimed for Medium- to Long-Term Growth (Development of Titles) Activation of existing IP Creating new IP / Library IPs Works from Hollywood-type Works from business with Local production for local consumption business Works released in FY2024.3 「Hypergalactic」 「The Birth of Kitaro: The My
Slide 27: Precautions regarding outlook
[Precautions regarding outlook] The contents described in this material are based on judgments and assumptions made with reference to information available as of the time of writing. The Company does not warrant that estimated figures, strategies or measures will necessarily be achieved. © I.T.PLANN