Toho Holdings (8129) investor relations material

Executive summary

• Achieved record-high operating revenue of ¥360.6B (+15.2% YoY), operating profit of ¥67.8B (+5.0% YoY), and net income of ¥51.7B (+19.4% YoY), driven by major film hits and robust IP & Anime business performance, despite a 4Q profit dip from game amortization and one-off expenses.

• Growth was led by strong performance in the Film and Movie Theater businesses, with notable box office hits and increased theater attendance.

• Segment reclassification established IP and Anime as a new reportable segment, reflecting strategic focus on growth areas.

• ROE reached 10.4%; year-end dividend set at ¥13.5/share (post-stock split); announced share buybacks up to 7.5M shares or ¥13.0B.

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

Financial highlights

• Operating revenue rose to ¥360.6B (+15.2% YoY); operating profit increased to ¥67.8B (+5.0% YoY); net income attributable to owners of parent was ¥51.7B (+19.4% YoY).

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

• Extraordinary income surged to ¥9.1B, mainly from gains on sale of investment securities; extraordinary losses rose to ¥3.4B, including demolition costs and a provision for loss under the Anti-Monopoly Act.

• Cash flows from operating activities were ¥65.3B; cash and cash equivalents at year-end were ¥86.7B.

• Net assets rose to ¥533.0B, with an equity ratio of 73.3%.

Outlook and guidance

• FY2/27 initial forecast: operating revenue ¥345.0B, operating profit ¥62.0B, net income ¥41.0B; expects a YoY profit decline due to increased SG&A and infrastructure investments.

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

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

• Uncertainty expected due to rising prices and market volatility.

• Aims to achieve and potentially exceed forecasts by ensuring title success and expanding IP lineup.