Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Consolidated)

Summary of Operating Results

During the consolidated cumulative third quarter of the fiscal year ending March 2026, net sales increased to 1,002,243 million yen (4.9% YoY increase), while operating income decreased to 157,395 million yen (12.2% YoY decrease), ordinary income was 166,484 million yen (10.2% YoY decrease), and net income attributable to owners of parent for the quarter was 115,044 million yen (10.6% YoY decrease). The Toy and Hobby Business performed well both domestically and internationally, recording net sales of 503,658 million yen (8.5% YoY increase) and segment profit of 103,577 million yen (6.1% YoY increase). The Digital Business posted net sales of 358,853 million yen (0.5% YoY increase) driven by the launch of new network content but saw a profit decline with segment profit of 49,889 million yen (29.3% YoY decrease). Although the Visual and Music Business and Amusement Business achieved revenue growth, their profits declined.

Financial Position and Capital Policy

Total assets increased to 1,169,415 million yen compared to the end of the previous fiscal year, and net assets rose by 61,920 million yen to 855,136 million yen, resulting in an increase in the equity ratio to 73.1%. On April 30, 2025, 10,000,000 treasury shares were canceled, reducing capital surplus and treasury stock each by 35,083 million yen. On February 5, 2026, a resolution was made to repurchase up to 6,000,000 common shares and up to 30,000 million yen via market purchases during the period from February 6 to April 30, 2026. This is aimed at improving capital efficiency and strengthening the financial structure.

Revision of Earnings Forecast and Medium-term Plan

The full-year consolidated earnings forecast for the fiscal year ending March 2026 was revised to net sales of 1,300,000 million yen (4.0% increase from previous forecast), operating income of 181,000 million yen (9.7% increase), ordinary income of 190,000 million yen (10.5% increase), and net income attributable to owners of parent of 130,000 million yen (8.3% increase). The medium-term plan (April 2025 to March 2028) is guided by the purpose 'Fun for All into the Future' and the mid- to long-term vision 'Connect with Fans', promoting an IP-centric strategy. The plan focuses on expanding business scale, acquiring new business pillars, and building a long-term profit structure, undertaking initiatives such as global expansion, new IP creation, environmental considerations, and data utilization. Approximately 600 billion yen in growth investments are planned, aiming to balance shareholder returns with growth investment.