TOMY : Consolidated Financial Results for the First Three 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.

August 9, 2022

CONSOLIDATED FINANCIAL RESULTS for the First Three 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:	August 10, 2022
Scheduled date to commence dividend payments:	-
Supplementary material on quarterly financial results:	No
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 three months of the fiscal year ending March 31, 2023 (From April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Millions of		%	Millions of	%	Millions of	%	Millions of	%
	yen			yen		yen		yen
June 30, 2022	39,552		12.8	1,665	(22.5)	1,335	(37.7)	735	(75.6)
June 30, 2021	35,058		30.8	2,148	-	2,144	-	3,009	-

Note:	Comprehensive income
	Three months ended June 30, 2022:	¥6,600 million	[138.3%]
	Three months ended June 30, 2021:	¥2,769 million	[-%]
		Basic earnings	Diluted earnings
		per share	per share
Three months ended	yen		yen
June 30, 2022	8.04		8.03
June 30, 2021	32.18		32.17

(2) Consolidated financial position

		Total assets		Net assets	Equity ratio	Net assets per share
As of		Millions of yen		Millions of yen	%	Yen
June 30, 2022		164,972		83,544	50.5	909.74
March 31, 2022		156,090		79,174	50.5	860.74
Reference:	Equity
	As of June 30, 2022:	¥83,259 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	-
March 31, 2023
Fiscal year ending
March 31, 2023		17.50	-	15.00	32.50
(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
Six months ending	80,000		3.9	5,500	(7.3)	5,400	(9.1)	3,500	(33.3)	37.72
September 30, 2022
(cumulative)
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 three 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 "(3) Notes Regarding Consolidated Financial
3. 
   Statements, (Application of specific accounting for preparing quarterly consolidated financial statements)" of "2. Consolidated Financial Statements and Significant Notes Thereto" on page 13 of the attached material.
4. Changes in accounting policies, changes in accounting estimates, and restatement
5. 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 "(3) Notes Regarding Consolidated Financial Statements, (Changes in accounting policies)" of "2. Consolidated Financial Statements and Significant Notes Thereto" on page 13 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 June 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 June 30, 2022	3,470,832 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)

Three months ended June 30, 2022	91,502,219 shares
Three months ended June 30, 2021	93,502,437 shares

Note: The Company has introduced "Performance-linkedstock-based compensation system for Directors (excluding outside directors and part-time directors)" and "Performance-linkedstock-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 8.
  A financial results presentation meeting for institutional investors and analysts will be held via telephone conference on August 9, 2022.
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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....................................................................................................	8
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements..........	8
2.	Consolidated Financial Statements and Significant Notes Thereto.................................................	9
(1)	Consolidated Balance Sheet .........................................................................................................	9
(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...	11
	(Consolidated statement of income) ..............................................................................................	11
	(Consolidated statement of comprehensive income) .....................................................................	12
(3)	Notes Regarding Consolidated Financial Statements ................................................................	13
	(Notes regarding assumption of going concern)............................................................................	13
	(Notes on significant changes in the amount of shareholders' equity)..........................................	13
	(Application of specific accounting for preparing quarterly consolidated financial statements) ..	13
	(Changes in accounting policies)...................................................................................................	13
	(Additional information) ...............................................................................................................	13
	(Consolidated statement of income) ..............................................................................................	13
	(Segment information)...................................................................................................................	14

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1. Qualitative Information Regarding Consolidated Operating Results

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

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

With the lifting of measures to prevent the spread of COVID-19 in all areas throughout Japan, social and economic activities moved toward normalization, and 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 ¥39,552 million (up 12.8% 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 KIDDYLAND retail business.

For our long-standing products, we continued our efforts to plan, develop, and enhance sales of attractive products. We launched new products such as "TOMICA Exciting Drive" a driving course with lever and handle operations, for TOMICA, and "Make you excited! PLARAIL BEST SELECTION SET," which allows various layouts to be combined, for PLARAIL. The current fiscal year saw continued strong sales and the celebration of the 20th anniversary of the release of the trading card game DUEL MASTERS that enjoyed sales growth in the previous fiscal year, and overseas-bound exports of TRANSFORMERS grew mainly in North America and Asia. Furthermore, "Punirunes," the LCD toy with a new texture, remained popular due to its product qualities integrating digital and real play and the attraction of its many characters. In addition, 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 ¥1,665 million (down 22.5% year on year). This was mainly because corporate activities returned to normal and selling, general and administrative expenses shifted to increase, with the above foreign exchange impact and the shift to a decline in COVID-19 cases mainly in Japan. While net sales increased, rising distribution costs at overseas locations, the product mix for domestic toys, and the impact of foreign exchange caused our sales cost ratio to increase year on year. Ordinary profit was ¥¥1,335 million (down 37.7% year on year) due to the recording of non-operating expenses mainly from foreign exchange losses. Profit attributable to owners of parent decreased to ¥735 million (down 75.6% year on year), but this was due to the recording of ¥1,884 million in extraordinary income as gain on transfer from the transfer of real estate used for offices in non-current assets in the same period of the previous fiscal year.

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