Tomy : Consolidated financial results for the fiscal year ended March 31,2017

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.

CONSOLIDATED FINANCIAL RESULTS for the Fiscal Year Ended March 31, 2017

May 10, 2017

Company name: TOMY COMPANY, LTD.

Listing: First Section of the Tokyo Stock Exchange Securities identification code: 7867

URL: http://www.takaratomy.co.jp/

Representative: Harold George Meij, Representative Director, President and CEO Inquiries: Kazuhiro Kojima, Board Director, Executive Managing Officer & CFO

Head of Corporate Administrations

TEL: [phone] (from overseas)

Scheduled date of ordinary general meeting of shareholders: June 28, 2017 Scheduled date to commence dividend payments: June 29, 2017

Scheduled date to file securities report: June 29, 2017

Supplementary material on financial results: Yes

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 fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)
2. Consolidated operating results (Percentages indicate year-on-year changes.)

   Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
   Fiscal year ended March 31, 2017 March 31, 2016	Millions of yen 167,661 163,067	% 2.8 8.8	Millions of yen 7,744 2,698	% 187.0 9.4	Millions of yen 7,823 1,459	% 435.9 (27.5)	Millions of yen 5,372 (6,703)	% - -

   Basic earnings per share	Diluted earnings per share	Return on equity	Ordinary profit/ total assets	Operating profit/ net sales
   Fiscal year ended	yen	yen	%	%	%
   March 31, 2017	61.88	60.94	12.2	5.2	4.6
   March 31, 2016	(78.74)	-	(15.7)	1.0	1.7

   Note:	Comprehensive income
   Fiscal year ended March 31, 2017:	7,440 million yen	[	-%]
   Fiscal year ended March 31, 2016:	(10,458) million yen	[	-%]

   Reference: Equity in earnings (losses) of affiliates

   Fiscal year ended March 31, 2017: (7) million yen

   Fiscal year ended March 31, 2016: 8 million yen

3. Consolidated financial position

   Total assets	Net assets	Equity ratio	Net assets per share
   As of	Millions of yen	Millions of yen	%	yen
   March 31, 2017	157,693	51,611	32.4	548.45
   March 31, 2016	145,652	37,824	25.5	432.87

   Reference: Equity

   As of March 31, 2017: 51,062 million yen

   As of March 31, 2016: 37,146 million yen

4. Consolidated cash flows

5. Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents
   Fiscal year ended March 31, 2017 March 31, 2016	Millions of yen 24,896 8,675	Millions of yen (3,793) (3,974)	Millions of yen (1,927) (6,014)	Millions of yen 58,530 39,902

6. Cash dividends

   Annual dividends					Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   First quarter- end	Second quarter- end	Third quarter- end	Year- end	Total
   Fiscal year ended	yen	yen	yen	yen	yen	Millions of yen	%	%
   March 31, 2016	-	5.00	-	5.00	10.00	854	-	2.0
   March 31, 2017	-	5.00	-	5.00	10.00	898	16.2	2.0
   Fiscal year ending March 31, 2018 (Forecast)	-	5.00	-	5.00	10.00		15.8

7. Consolidated earnings forecasts for the fiscal year ending March 31, 2018
8. (From April 1, 2017 to March 31, 2018) (Percentages indicate year-on-year changes.)

   Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent		Basic earnings per share
   Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
   September 30, 2017	80,000	4.3	3,000	15.7	2,800	73.3	2,100	250.4	24.19
   (cumulative)
   Fiscal year ending March 31, 2018	170,000	1.4	8,000	3.3	8,000	2.3	5,500	2.4	63.35

   * Notes
9. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
10. Changes in accounting policies, changes in accounting estimates, and restatement

11. Changes in accounting policies due to revisions to accounting standards: Yes

12. Changes in accounting policies due to other reasons: None

13. Changes in accounting estimates: None

14. Restatement: None

15. Number of issued shares (common shares)

16. Total number of issued shares at the end of the period (including treasury shares)

    As of March 31, 2017	96,290,850 shares
    As of March 31, 2016	96,290,850 shares

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

    As of March 31, 2017	3,186,873 shares
    As of March 31, 2016	10,476,617 shares

18. Average number of shares during the period

19. Fiscal year ended March 31, 2017	86,820,753 shares
    Fiscal year ended March 31, 2016	85,132,921 shares

    * Financial results reports are not required to be audited.

    Consolidated Financial Statements (1) Consolidated balance sheet

    (Millions of yen)

    As of March 31, 2016 As of March 31, 2017

    Assets

    Current assets
    Cash and deposits	40,046	58,623
    Notes and accounts receivable - trade	20,167	20,942
    Merchandise and finished goods	18,437	13,982
    Work in process	439	328
    Raw materials and supplies	1,223	1,286
    Deferred tax assets	2,103	1,931
    Other	5,841	5,965
    Allowance for doubtful accounts	(170)	(168)
    Total current assets	88,089	102,891
    Non-current assets
    Property, plant and equipment
    Buildings and structures	13,608	13,381
    Accumulated depreciation	(8,406)	(8,530)
    Accumulated impairment loss	(457)	(412)
    Buildings and structures, net	4,743	4,437
    Machinery, equipment and vehicles	2,229	2,337
    Accumulated depreciation	(1,495)	(1,605)
    Accumulated impairment loss	(17)	(17)
    Machinery, equipment and vehicles, net	716	714
    Tools, furniture and fixtures	26,932	21,982
    Accumulated depreciation	(23,068)	(19,137)
    Accumulated impairment loss	(1,108)	(458)
    Tools, furniture and fixtures, net	2,754	2,387
    Land	4,309	4,194
    Leased assets	6,250	7,762
    Accumulated depreciation	(3,136)	(4,161)
    Accumulated impairment loss	(0)	(0)
    Leased assets, net	3,113	3,599
    Construction in progress	303	485
    Total property, plant and equipment	15,940	15,819
    Intangible assets
    Goodwill	22,017	20,468
    Right of using trademark	7,626	6,853
    Other	6,908	6,593
    Total intangible assets	36,552	33,915
    Investments and other assets
    Investment securities	2,628	2,584
    Deferred tax assets	80	207
    Other	2,398	2,294
    Allowance for doubtful accounts	(82)	(49)
    Total investments and other assets	5,025	5,037
    Total non-current assets	57,518	54,772
    Deferred assets
    Bond issuance cost	44	29
    Total deferred assets	44	29

    Total assets 145,652 157,693