TOMY : Consolidated Financial Results for the First Six Months of the Fiscal Year Ending March 31, 2023

(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.

November 8, 2022

CONSOLIDATED FINANCIAL RESULTS

for the First Six Months of the Fiscal Year Ending March 31, 2023

Company name:	TOMY COMPANY, LTD.
Listing:	Prime Market of the Tokyo Stock Exchange
Securities identification code:	7867
URL:	www.takaratomy.co.jp
Representative:	Kazuhiro Kojima, Representative Director, President & COO
Inquiries:	Goshiro Ito,
	Executive Officer, CFO, Head of Corporate Administrations
	TEL: [phone] (from overseas)
Scheduled date to file quarterly securities report:	November 9, 2022
Scheduled date to commence dividend payments:	December 9, 2022
Supplementary material on quarterly financial results:	Yes
Quarterly financial results presentation meeting:	Yes (for institutional investors and analysts)

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

1. Consolidated performance for the first six months of the fiscal year ending March 31, 2023 (From April 1, 2022 to September 30, 2022)

(1) Consolidated operating results (cumulative)

		Net sales			Operating profit		Ordinary profit	Profit attributable to
					owners of parent
Six months ended	Millions of		%	Millions of		%		Millions of	%	Millions of	%
		yen				yen				yen		yen
September 30, 2022	89,035		15.6		6,010		1.3		4,893	(17.6)	3,192	(39.2)
September 30, 2021	77,014		21.9		5,935		222.6		5,941	266.2	5,248	916.4
Note:	Comprehensive income
	Six months ended September 30, 2022:	¥12,732 million	[129.4%]
	Six months ended September 30, 2021:	¥5,550 million	[-%]
		Basic earnings		Diluted earnings
		per share			per share
Six months ended			yen				yen
September 30, 2022			34.86				34.83
September 30, 2021			56.31				56.28

(2) Consolidated financial position

	Total assets		Net assets	Equity ratio	Net assets per share
As of	Millions of yen	Millions of yen	%	yen
September 30, 2022	173,253	90,081	51.9	978.29
March 31, 2022	156,090	79,174	50.5	860.74
Reference: Equity
As of September 30, 2022:	¥89,923 million
As of March 31, 2022:	¥78,863 million

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(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	-	10.00	-	22.50	32.50
March 31, 2022
Fiscal year ending	-	17.50
March 31, 2023
Fiscal year ending			-	15.00	32.50
March 31, 2023
(Forecast)
Note:	Revisions to the cash dividend forecasts most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023

(From April 1, 2022 to March 31, 2023)

								Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit	earnings
		owners of parent
								per share
	Millions		%	Millions	%	Millions	%	Millions	%	yen
	of yen		of yen	of yen	of yen
Fiscal year ending	170,000		2.8	12,000	(2.8)	11,800	(6.8)	7,500	(17.7)	80.83
March 31, 2023
Note: Revisions to the consolidated earnings forecasts most recently announced: None

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• Notes

1. Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of specific accounting for preparing quarterly consolidated financial statements: Yes
   Note: For more details, please refer to the section of "(4) Notes Regarding Consolidated Financial
   Statements, (Application of specific accounting for preparing quarterly consolidated financial statements)" of "2. Consolidated Financial Statements and Significant Notes Thereto" on page 16 of the attached material.
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note: For more details, please refer to the section of "(4) Notes Regarding Consolidated Financial Statements, (Changes in accounting policies)" of "2. Consolidated Financial Statements and Significant Notes Thereto" on page 16 of the attached material.

1. Number of issued shares (common shares)
   A. Total number of issued shares at the end of the period (including treasury shares)

As of September 30, 2022	94,990,850 shares
As of March 31, 2022	94,990,850 shares

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

As of September 30, 2022	3,072,316 shares
As of March 31, 2022	3,367,301 shares

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

Six months ended September 30, 2022	91,567,042 shares
Six months ended September 30, 2021	93,201,229 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.

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Regarding future forecasts, please refer to "(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements," under "1. Qualitative Information Regarding Consolidated Operating Results," on page 9.
  A financial results presentation meeting for institutional investors and analysts will be held online on November 8, 2022. Materials for the financial results presentation meeting will be available on our website on the same day.
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[Attached Material]
1.	Qualitative Information Regarding Consolidated Operating Results ..............................................	5
(1)	Explanation of Operating Results ................................................................................................	5
(2)	Overview of Financial Position....................................................................................................	9
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements..........	9
2.	Consolidated Financial Statements and Significant Notes Thereto...............................................	10
(1)	Consolidated Balance Sheet .......................................................................................................	10
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...	12
	(Consolidated statement of income) ..............................................................................................	12
	(Consolidated statement of comprehensive income) .....................................................................	13
(3)	Consolidated Statement of Cash Flows......................................................................................	14
(4)	Notes Regarding Consolidated Financial Statements ................................................................	16
	(Notes regarding assumption of going concern)............................................................................	16
	(Notes on significant changes in the amount of shareholders' equity)..........................................	16
	(Application of specific accounting for preparing quarterly consolidated financial statements) ..	16
	(Changes in accounting policies)...................................................................................................	16
	(Additional information) ...............................................................................................................	16
	(Consolidated statement of income) ..............................................................................................	16
	(Segment information)...................................................................................................................	17

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1. Qualitative Information Regarding Consolidated Operating Results

1. Explanation of Operating Results
   (Highlights of First Six Months of the Fiscal Year Ending March 31, 2023)

(Impacts etc. of the novel coronavirus disease (COVID-19))

With social and economic activities moving toward normalization, including the easing of restrictions on movement to counter COVID-19, we also saw a recovery in the flow of people to stores in the toy market.

In addition, the business environment surrounding the Company remains highly uncertain overall with the sharp rise in global raw materials prices and inflation and extreme foreign exchange fluctuations that began with the sudden deterioration in the situation in Ukraine.

(Consolidated performance)

• Net sales

Net sales were ¥89,035 million (up 15.6% year on year). This was due to strong shipments of toys, the continued popularity of amusement machines and GACHA capsule toys developed by T-ARTS Company and sales growth in the KIDDY LAND retail business.

For our long-standing products, we continued our efforts to plan, develop, and enhance sales of attractive products not only for children, but for adults as well. For TOMICA, we launched large-scale products for children, such as "TOMICA Big Fire Truck & Transforming Command Station," and for adults, we proactively promoted new products such as the "TOMICA Premium" Series, which pursues reality.

For the trading card game DUEL MASTERS, which celebrated the 20th anniversary of its release this fiscal year, the TV animation was revamped in September, and we strengthened marketing through the launch of related products and so forth. Overseas-bound exports of TRANSFORMERS grew mainly in North America and Asia.

For "Punirunes," the LCD toy with a new texture that has proved highly popular since its launch, we announced that an original toy-inspired TV animation would start broadcasting from October.

We also commenced development of "Metaverse Pop-up Pirate," to enable people to play with toys in the metaverse (virtual space), providing a new play experience in digital space.

The amusement machine Pokémon Mezastar developed by T-ARTS Company continued to be well received, and sales increased for the T-ARTS Company's GACHA capsule toy business owing to related products using hit contents, amid the increasing market popularity of capsule toys.

• Profit

Operating profit was ¥6,010 million (up 1.3% year on year). This was mainly because of growth in gross profit due to the increase in net sales alongside efforts to manage selling, general and administrative expenses efficiently, despite a year-on-year increase in our sales cost ratio, mainly due to rising distribution costs at overseas locations and the impact of foreign exchange.

Ordinary profit was ¥4,893 million (down 17.6% year on year) due to the recording of non-operating expenses mainly from foreign exchange losses.

Profit attributable to owners of parent decreased to ¥3,192 million (down 39.2% year on year), but this was due to the recording of extraordinary income as gain on transfer from the transfer of real estate used for offices in non-current assets in the first quarter of the previous fiscal year.

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