Tomy Company, Ltd.TSE: 7867

CONSOLIDATED FINANCIAL RESULTS for the First Three Months of the Fiscal Year Ending March 31, 2025

· Issued by Tomy Company, Ltd.
(Percentages indicate year-on-yearchanges.)

Translation

Notice: This English version is a translation of the original Japanese document and is only for reference purposes. In the case where any differences occur between the English version and the original Japanese version, the Japanese version will prevail.

August 6, 2024

CONSOLIDATED FINANCIAL RESULTS

for the First Three Months of the Fiscal Year Ending March 31, 2025

Company name:

TOMY COMPANY, LTD.

Listing:

Prime Market of the Tokyo Stock Exchange

Securities identification code:

7867

URL:

www.takaratomy.co.jp

Representative:

Akio Tomiyama, Representative Director, President & COO

Inquiries:

Katsufumi Hirooka, Executive Officer, Head of Corporate Administrations

TEL: +81-3-5654-1548 (from overseas)

Scheduled date to commence dividend payments: Supplementary material on financial results: Financial results presentation meeting:

–

No

Yes (for institutional investors and analysts)

(in millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the first three months of the fiscal year ending March 31, 2025 (From April 1, 2024 to June 30, 2024)

(1) Consolidated operating results (cumulative)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

June 30, 2024

53,586

24.3

4,157

65.9

3,661

57.1

2,507

38.8

June 30, 2023

43,102

9.0

2,506

50.5

2,330

74.5

1,805

145.6

Note:

Comprehensive income

Three months ended June 30, 2024

¥7,215 million

[11.9%]

Three months ended June 30, 2023

¥6,451 million

[(2.3)%]

Basic earnings per share

Diluted earnings per

share

Three months ended

yen

yen

June 30, 2024

27.84

27.83

June 30, 2023

19.72

19.70

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

As of

Millions of yen

Millions of yen

%

yen

June 30, 2024

164,597

101,547

61.7

1,133.68

March 31, 2024

166,252

99,999

60.1

1,104.07

Reference:

Equity

As of June 30, 2024

¥101,513 million

As of March 31, 2024

¥99,966 million

– 1 –

(Percentages indicate year-on-yearchanges.)

2. Cash dividends

Annual dividends

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

yen

yen

yen

yen

yen

Fiscal year ended

–

17.50

–

32.50

50.00

March 31, 2024

Fiscal year ending

–

March 31, 2025

Fiscal year ending

March 31, 2025

24.00

–

24.00

48.00

(Forecast)

Notes: 1. Revisions to the cash dividend forecasts most recently announced: None

2. Breakdown of year-end dividend for the fiscal year ended March 31, 2024: ordinary dividend 24.50 yen, commemorative dividend 8.00 yen

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2025

(From April 1, 2024 to March 31, 2025)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic

earnings per

owners of parent

share

Millions

%

Millions

%

Millions

%

Millions

%

yen

of yen

of yen

of yen

of yen

Six months ending

110,000

14.5

9,000

12.3

8,700

18.2

6,000

6.9

65.90

September 30, 2024

(cumulative)

Fiscal year ending

230,000

10.4

20,000

6.3

19,500

9.5

12,500

27.4

137.30

March 31, 2025

Note: Revisions to the consolidated earnings forecasts most recently announced: None

– 2 –

  • Notes
  1. Significant changes in the scope of consolidation during the period: None
  2. Application of specific accounting for preparing quarterly consolidated financial statements: Yes
    Note: For more details, please refer to the section of “(3) Notes Regarding Consolidated Financial
    Statements, (Notes regarding specific accounting for preparing quarterly consolidated financial statements)” of “2. Consolidated Financial Statements and Significant Notes Thereto” on page 13 of the attached material.
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    1. Changes in accounting policies due to revisions to accounting standards: None
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement: None
  4. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2024

93,616,650 shares

As of March 31, 2024

93,616,650 shares

  1. Number of treasury shares at the end of the period

As of June 30, 2024

As of March 31, 2024

4,072,977 shares

3,072,841 shares

  1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2024

90,060,225 shares

Three months ended June 30, 2023

91,581,157 shares

Note: The Company has introduced “Performance-linkedstock-based compensation system for Directors (excluding outside directors and part-time directors)” and “Performance-linked stock- based compensation system for Executive Officers.” Treasury shares remaining in the “Performance-linkedstock-based compensation system for Directors (excluding outside directors and part-time directors)” and the “Performance-linkedstock-based compensation system for Executive Officers” that are recorded as treasury shares in shareholders’ equity are included in treasury shares to be deducted in the calculation of the total number of issued shares at the end of the period for the calculation of net assets per share. They are also included in treasury shares to be deducted in the calculation of the average number of shares during the period for the calculation of basic earnings per share.

  • Review of the Japanese-language originals of the attached consolidated financial statements by certified public accountants or an audit corporation: None
  • Proper use of earnings forecasts, and other special matters
    Regarding future forecasts, please refer to “(3) Explanation of Consolidated Earnings Forecasts and Other Forward-lookingStatements,” under “1. Qualitative Information Regarding Consolidated Operating Results,” on page 8.
    A financial results presentation meeting for institutional investors and analysts will be held via telephone conference on August 6, 2024.

– 3 –

[Attached Material]

1.

Qualitative Information Regarding Consolidated Operating Results

5

(1)

Overview of Operating Results

5

(2)

Overview of Financial Position

8

(3)

Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements

8

2.

Consolidated Financial Statements and Significant Notes Thereto

9

(1)

Consolidated Balance Sheet

9

(2)

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...

11

(Consolidated statement of income)

11

(Consolidated statement of comprehensive income)

12

(3)

Notes Regarding Consolidated Financial Statements

13

(Notes regarding specific accounting for preparing quarterly consolidated financial statements) 13

(Segment information and other notes)

13

(Notes on significant changes in the amount of shareholders’ equity)

15

(Notes regarding assumption of going concern)

15

(Notes regarding quarterly consolidated statement of cash flows)

15

– 4 –

1. Qualitative Information Regarding Consolidated Operating Results

  1. Overview of Operating Results
    (Highlights of First Three Months of the Fiscal Year Ending March 31, 2025)

Looking at the business environment surrounding the Company, although the situation in Japan remains largely stagnant, it has continued to recover modestly thanks to the effects of various government policies amid improvements in the employment and income environment. Meanwhile, with questions about the economic and forex impact of persistently high interest rates in Europe and the United States, as well as concerns about the future of the Chinese economy, the situation remained unpredictable.

Under our “Medium- to Long-term Management Strategy 2030” announced in May 2024, we aim to achieve net sales of ¥300 billion and an operating profit margin of 10% in the fiscal year ending March 31, 2030 by establishing a new value-creation model, expanding the scale of our business with age groups and regions axis as growth drivers, and aligning our business strategies with the corporate strategies that support them.

In the first quarter, which marks the start of this strategy, TOMY Company achieved sales growth for “BEYBLADE X” (which has been available in Japan and Asia since July of last year) thanks to the promotion of branding measures that transcend age and region based on the theme of “BEYBLADE WILL BECOME SPORTS.” Furthermore, we have begun global expansion in full swing, including the commencement of exports to Europe and the United States. Additionally, in May, we launched the enormously popular comic “DETECTIVE CONAN” as a trading card game aimed at a wide range of customer base, generating new sales.

At T-ARTS Company, sales of Pokémon-related products such as plush toys grew, in addition to which in the GACHA capsule toy business we increased the number of items offered, including character products, and we also expanded our installation of GACHA sales spaces in capsule toy specialty stores, while also expanding overseas, resulting in favorable performance.

In Kiddy Land operations, continuing from last year, we offered fresh and topical character products and miscellaneous items, which are gaining popularity among people of all ages in Japan and abroad. In the midst of this, the continued popularity of characters such as “Chiikawa” and further growth in inbound demand led to favorable performance, with flagship stores such as the Harajuku and Umeda stores, as well as our character specialty stores, putting in strong performance.

In addition, as part of our corporate strategy, we have established a system to promote sustainable growth, including the announcement in June of revisions to our personnel systems, such as changing to a job-based personnel system and expanding support for balancing work and family life through the establishment of a new childbirth and childcare monetary gift system and other measures.

As a result of these efforts, business performance in the first three months of the fiscal year ending March 31, 2025 was favorable in Japan, with TOMY Company, T-ARTS Company, and Kiddy Land showing significant growth, while business performance in Asia was also strong. Net sales in Europe, the United States and Australia were ¥53,586 million (up 24.3% year on year), marking a record high for the second consecutive period, as a result of sales remaining resilient, despite sluggish toy markets. In addition, operating profit was ¥4,157 million (up 65.9% year on year) and ordinary profit was ¥3,661 million (up 57.1% year on year), both of which reached record highs for the second consecutive period, and profit attributable to owners of parent was ¥2,507 million (up 38.8% year on year), making for a smooth start under the new management system. These results were mainly due to the increase in gross profit accompanying the growth in net sales, and efficient management of selling, general and administrative expenses.

– 5 –

(Overview of Reportable Segments)

(Millions of yen)

First three

First three

months of the

months of the

Rate of change

fiscal year

fiscal year

Change

(%)

ended March

ending March

31, 2024

31, 2025

Net sales

43,102

53,586

10,483

24.3

Japan

36,521

46,521

10,000

27.4

Americas

5,936

6,383

447

7.5

Europe

770

931

161

20.9

Oceania

593

603

9

1.7

Asia

14,079

17,481

3,402

24.2

(excl. Japan)

Eliminations

(14,797)

(18,335)

(3,537)

–

and corporate

Operating profit/(loss)

2,506

4,157

1,651

65.9

Japan

3,719

5,457

1,738

46.7

Americas

(274)

(221)

52

–

Europe

(272)

(261)

11

–

Oceania

58

9

(48)

(83.3)

Asia

417

746

329

78.8

(excl. Japan)

Eliminations

(1,142)

(1,574)

(431)

–

and corporate

Japan

(Millions of yen)

First three months of

First three months of

the fiscal year ended

the fiscal year ending

Change

March 31, 2024

March 31, 2025

Net sales

36,521

46,521

10,000

Operating profit

3,719

5,457

1,738

Net sales were ¥46,521 million (up 27.4% year on year), and operating profit was ¥5,457 million (up 46.7% year on year). TOMY Company’s modernized version of Japanese “bei-goma” battling tops, “BEYBLADE X,” which was launched in July of last year, has seen sales expand as a result of the implementation of branding measures that transcend age and region based on the theme of “BEYBLADE WILL BECOME SPORTS.” Furthermore, we have begun global expansion in full swing, including the commencement of exports to Europe and the United States. Additionally, in May, we launched the enormously popular comic “DETECTIVE CONAN” as a trading card game aimed at a wide range of customer base, generating new sales. Our IP “Punirunes,” which we launched in 2021, has proven popular in Japan and Asia, and we have begun exporting it to Europe and the United States, thus continuing the IP’s growth into global content. Additionally, in the digital business, the collaboration with the VTuber group “HoloLive” for “DUEL MASTERS PLAY’S” became a hot topic, while “The Game of Life for the Nintendo Switch™,” released in October last year, continued to gain popularity.

At T-ARTS Company, sales of Pokémon-related products such as plush toys grew, in addition to which in the GACHA capsule toy business we increased the number of items offered, including character products, and we also expanded our installation of GACHA sales spaces in capsule toy specialty stores, while also expanding overseas, resulting in favorable performance. In addition, in amusement machines, although operating rates on “Pokémon Mezastar” temporarily declined due to preparations to replace it with a successor machine, performance remained strong, thanks to the new launch of “Himitsu no AIPRI” in April.

In Kiddy Land operations, continuing from last year, we offered fresh and topical character products and miscellaneous items, which are gaining popularity among people of all ages in Japan and abroad. In the

– 6 –

midst of this, the continued popularity of characters such as “Chiikawa” and further growth in inbound demand led to favorable performance, with flagship stores such as the Harajuku and Umeda stores, as well as our character specialty stores, putting in strong performance.

Americas

(Millions of yen)

First three months of

First three months of

the fiscal year ended

the fiscal year ending

Change

March 31, 2024

March 31, 2025

Net sales

5,936

6,383

447

Operating loss

(274)

(221)

52

Net sales were ¥6,383 million (up 7.5% year on year). At the profit level, we recorded an operating loss of ¥221 million (operating loss of ¥274 million in the same period of the previous fiscal year). Although sales of agricultural machinery toys decreased due to the overall slump in the toy market, sales of baby products including “Boon” and toy and hobby products remained strong. Net sales at Fat Brain Holdings, LLC increased year on year.

Europe

(Millions of yen)

First three months of

First three months of

the fiscal year ended

the fiscal year ending

Change

March 31, 2024

March 31, 2025

Net sales

770

931

161

Operating loss

(272)

(261)

11

Net sales were ¥931 million (up 20.9% year on year), and we recorded an operating loss of ¥261 million (operating loss of ¥272 million in the same period of the previous fiscal year). Although toy market was sluggish overall, there was strong performance from toy and hobby products such as bath toys, and agricultural machinery toys.

Oceania

(Millions of yen)

First three months of

First three months of

the fiscal year ended

the fiscal year ending

Change

March 31, 2024

March 31, 2025

Net sales

593

603

9

Operating profit

58

9

(48)

Net sales were ¥603 million (up 1.7% year on year). Operating profit was ¥9 million (down 83.3% year on year) due to a deterioration in gross profit margin caused by factors such as higher transportation costs. Sales of agricultural machinery toys decreased due to the sluggish toy market. On the other hand, sales grew in T-ARTS Company’s GACHA capsule toy business, and we boosted group synergy effects while also achieving strong sales of baby products.

Asia (excl. Japan)

(Millions of yen)

First three months of

First three months of

the fiscal year ended

the fiscal year ending

Change

March 31, 2024

March 31, 2025

Net sales

14,079

17,481

3,402

Operating profit

417

746

329

Net sales were ¥17,481 million (up 24.2% year on year), and operating profit was ¥746 million (up 78.8% year on year). In Asia, sales of “TOMICA” expanded in China, and “TOMICA Premium” became popular

– 7 –

among Kidults, resulting in strong performance. Additionally, in “BEYBLADE X,” which we launched toy sales in July of last year, we implemented a rollout for the brand in full swing, including broadcasts of its animation adaptation commencing in various regions. Furthermore, we released the “DETECTIVE CONAN Card Game” series in nine countries and regions, including Hong Kong, South Korea, and Taiwan, in May, simultaneous with its release in Japan, garnering a lot of attention. Other factors included an increase in overseas-bound exports of “BEYBLADE X” and other products at the manufacturing subsidiary TOMY (Hong Kong) Ltd.

  1. Overview of Financial Position Assets, Liabilities and Net Assets
    At the end of the first quarter of the fiscal year ending March 31, 2025, current assets stood at
    ¥113,004 million, down ¥4,557 million from the end of the previous fiscal year ended March 31, 2024. This was mainly attributable to a decrease in cash and deposits, despite increases in merchandise and finished goods and notes and accounts receivable - trade.
    Non-current assets stood at ¥51,593 million, up ¥2,902 million from the end of the previous fiscal year. This was mainly attributable to increases in property, plant and equipment and intangible assets, despite a decrease in investments and other assets.

    At the end of the first quarter, current liabilities stood at ¥51,215 million, down ¥2,506 million from the end of the previous fiscal year. This was mainly attributable to decreases in income taxes payable, accounts payable - other and accrued expenses, despite an increase in notes and accounts payable - trade.
    Non-current liabilities stood at ¥11,834 million, down ¥696 million from the end of the previous fiscal year. This was mainly attributable to a decrease in long-term borrowings, despite an increase in deferred tax liabilities.

    At the end of the first quarter, total net assets were ¥101,547 million, up ¥1,547 million from the end of the previous fiscal year. This was mainly attributable to increases in foreign currency translation adjustment and deferred gains or losses on hedges, despite the purchase of treasury shares.
  2. Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
    No changes have been made to the earnings forecasts that were announced on May 14, 2024.

– 8 –

2. Consolidated Financial Statements and Significant Notes Thereto

(1) Consolidated Balance Sheet

(Millions of yen)

As of March 31, 2024

As of June 30, 2024

Assets

Current assets

Cash and deposits

64,279

49,110

Notes and accounts receivable - trade

25,260

27,891

Merchandise and finished goods

17,716

22,387

Work in process

653

739

Raw materials and supplies

1,093

1,199

Other

8,778

11,911

Allowance for doubtful accounts

(220)

(235)

Total current assets

117,561

113,004

Non-current assets

Property, plant and equipment

Buildings and structures

14,010

14,142

Accumulated depreciation

(9,787)

(9,771)

Accumulated impairment loss

(921)

(927)

Buildings and structures, net

3,301

3,443

Machinery, equipment and vehicles

2,949

3,018

Accumulated depreciation

(2,496)

(2,570)

Accumulated impairment loss

(36)

(37)

Machinery, equipment and vehicles, net

417

410

Tools, furniture and fixtures

26,371

27,000

Accumulated depreciation

(24,240)

(24,817)

Accumulated impairment loss

(1,080)

(1,138)

Tools, furniture and fixtures, net

1,050

1,043

Land

3,958

3,974

Leased assets

7,137

7,354

Accumulated depreciation

(3,457)

(3,540)

Accumulated impairment loss

(449)

(477)

Leased assets, net

3,229

3,336

Right-of-use assets

2,760

2,778

Construction in progress

1,183

2,968

Total property, plant and equipment

15,901

17,955

Intangible assets

Goodwill

13,135

13,480

Other

12,465

13,151

Total intangible assets

25,600

26,631

Investments and other assets

Investment securities

3,426

3,336

Deferred tax assets

1,671

1,507

Other

2,109

2,182

Allowance for doubtful accounts

(19)

(20)

Total investments and other assets

7,188

7,006

Total non-current assets

48,690

51,593

Total assets

166,252

164,597

– 9 –

(Millions of yen)

As of March 31, 2024

As of June 30, 2024

Liabilities

Current liabilities

Notes and accounts payable - trade

14,598

19,453

Current portion of long-term borrowings

6,183

5,416

Lease liabilities

3,274

3,236

Accounts payable - other

10,425

8,522

Accrued expenses

10,913

9,690

Income taxes payable

4,520

1,256

Provisions

555

413

Other

3,250

3,226

Total current liabilities

53,722

51,215

Non-current liabilities

Long-term borrowings

4,181

3,283

Lease liabilities

3,259

3,438

Deferred tax liabilities

385

628

Deferred tax liabilities for land revaluation

472

472

Provisions

376

333

Retirement benefit liability

2,132

2,122

Other

1,724

1,556

Total non-current liabilities

12,530

11,834

Total liabilities

66,252

63,050

Net assets

Shareholders’ equity

Share capital

3,459

3,459

Capital surplus

6,818

6,818

Retained earnings

66,920

66,471

Treasury shares

(3,980)

(6,692)

Total shareholders’ equity

73,218

70,057

Accumulated other comprehensive income

Valuation difference on available-for-sale

1,682

1,624

securities

Deferred gains or losses on hedges

2,348

3,504

Revaluation reserve for land

624

624

Foreign currency translation adjustment

22,174

25,811

Remeasurements of defined benefit plans

(82)

(107)

Total accumulated other comprehensive income

26,747

31,456

Share acquisition rights

33

33

Total net assets

99,999

101,547

Total liabilities and net assets

166,252

164,597

– 10 –