Tomy : (May 12.2017)Fiscal Year 2016 Results

TOMY Company Ltd.‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌ Fiscal Year 2016 Results (April 1, 2016 - March 31, 2017) May 12, 2017

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TSE Securities Code: 7867

FY 2016 Financial Highlights (April 1, 2016 - March 31, 2017)

May 12, 2017

Kazuhiro Kojima Board Director

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Chief Financial Officer TOMY Company, Ltd.

Consolidated Income statements

FY2016			FY2015	¥100 million Difference
Actual	Revised Forecast (May 9, 2017)	Original Forecast	Actual
Sales	1,676	1,676	1,680	1,630	+46
Cost of Sales	1,039	－	－	1,057	-18
Gross Profit	637	－	－	573	+64
Operating income	77	77	40	26	+51
Operating income Margin	4.6%	4.6%	2.4%	1.7%	+2.9%
EBITDA	162	－	－	116	+46
Ordinary income	78	78	32	14	+64
Net Income(Loss)	53	53	15	-67	+120

• Sales

  * All figures have been rounded down to the nearest ¥100 million.

  Sales of "long-standing products," "BEYBLADE BURST," and "DUEL MASTERS" increased significantly in Japan, while sales moved briskly in Asia as well.

• Gross Profit

  Sales from the high-margin domestic toys were strong and the cost of procurements decreased.

• Operating Income

  Gross profit increased, despite an increase in SG&A expenses (see page 4).

• Ordinary Income

  Operating income increased and foreign exchange gains were recorded.

• Net Income

  Ordinary income increased substantially despite recording impairment loss on certain intangible assets at TOMY International Group. (see page 6)

  *Amortization of goodwill and intangible assets associated with acquisition of TOMY International ("TI"): FY2016 ¥2.0 bn, FY2015 ¥2.6 bn

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  * EBITDA=operating profit + depreciation + amortization of goodwill※ * US$ FX rate: FY2016 ¥108.38, FY2015 ¥120.14

  SG&A Breakdown

  ¥100 million

  FY2016	FY2015	Difference
  SG&A (total)	559	546	+13
  Personnel expense	190	185	+5
  Advertising expense	134	116	+18
  R&D expenses	30	28	+2
  Distribution expenses	70	71	-1
  Amortization of goodwill and intangible assets associated with acquisition of TI	20	26	-6
  	$18.7 MM	$22.4 MM	-3.7

  * All figures have been rounded down to the nearest ¥100 million.

  • SG&A (total)

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The Group focused on marketing and new product development to promote its sales expansion, leading to increases in advertising expenses and R&D expenses.