Toho (9602) investor relations material

Executive summary

• Achieved record-high operating revenue of ¥360.663B (+15.2% YoY), operating profit of ¥67.889B (+5.0% YoY), and net income of ¥51.768B (+19.4% YoY), driven by major film hits and robust IP & Anime business performance.

• Strong performance in Film and Movie Theater businesses, with increased theater attendance and box office success.

• Segment reclassification: IP & Anime business established as a new reportable segment, reflecting growth focus.

• ROE reached 10.4%; year-end dividend set at ¥13.5/share after a stock split.

• Extraordinary loss recorded due to provision for loss on Anti-Monopoly Act following an on-site inspection at a subsidiary.

Financial highlights

• Operating revenue: ¥360.7B (+15.2% YoY); operating profit: ¥67.9B (+5.0% YoY); net income attributable to owners of parent: ¥51.8B (+19.4% YoY).

• Gross profit margin was 44.3%; operating profit margin 18.8%.

• Ordinary profit: ¥70.14B (+8.8% YoY); comprehensive income: ¥68.7B (+13.8% YoY).

• Extraordinary income surged due to gains on sale of investment securities; extraordinary losses included demolition costs and a provision for loss under the Anti-Monopoly Act.

• Cash and cash equivalents at period end: ¥86.7B (up ¥10.1B YoY).

Outlook and guidance

• FY2/27 forecast: operating revenue ¥345.0B (down 4.3%), operating profit ¥62.0B (down 8.7%), net income ¥41.0B (down 20.8%), reflecting expected YoY profit decline due to higher SG&A but continued strong performance in Film and IP & Anime.

• Box office revenue for TOHO distribution films forecast at ¥90.0–¥100.0B; nationwide box office at ¥250.0–¥260.0B.

• Capital expenditures budgeted at ¥29.8B, including new cinema openings and digital initiatives.

• Aim to achieve and surpass initial forecasts by ensuring title success and expanding IP lineup.

• Uncertainty expected due to rising prices and market volatility.