Toho (9602) investor relations material

Executive summary

• 1Q FY2/27 operating revenue was ¥88.7B (+4.6% YoY), operating profit ¥13.8B (-28.3% YoY), and profit attributable to owners of parent ¥8.2B (-29.1% YoY).

• Profit decline mainly due to consolidation adjustment from the TOHO Global company split in the IP & Anime business; pre-adjustment, IP & Anime revenue and profit increased YoY.

• The Japanese economy showed gradual recovery, but uncertainty persisted due to rising prices, geopolitical risks, and market fluctuations.

• Strong performance in the Film and Movie Theater businesses, driven by hit titles.

• The company continued to pursue its "TOHO Mid-Term Plan 2028" targets.

Financial highlights

• Operating revenue rose to ¥88.7B (+4.6% YoY), but operating profit fell to ¥13.8B (-28.3% YoY) due to higher operating costs and SG&A.

• Gross profit for the quarter was ¥50.1B, up from ¥44.8B YoY.

• Ordinary profit was ¥13.7B (-27.4% YoY); profit attributable to owners of parent was ¥8.2B (-29.1% YoY).

• Comprehensive income decreased 44.2% YoY to ¥9.5B.

• Cash flows from operating activities were ¥11.8B; cash and cash equivalents at period end were ¥78.9B.

Outlook and guidance

• Initial full-year forecasts remain unchanged; the impact of the 1Q consolidation adjustment is considered minor.

• Full-year forecast for FY ending February 28, 2027: operating revenue ¥345.0B (+4.3%), operating profit ¥62.0B (+8.7%), profit attributable to owners of parent ¥41.0B (-20.8%), and EPS ¥49.22.

• Aiming to exceed initial forecasts through a strong summer box office and robust IP lineup.

• Strategic shareholdings reduction and TOHO Cinemas admission fee revision are not yet reflected in the forecast.