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For Financial Results for Second Quarter Ended September 30, 2025 Toei Animation Co., Ltd. Financial Results Briefing Material
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CONTENTS 01. Financial Results for Second Quarter Ended September 30, 2025 02. Outlook for FY2026.3 03. Future Business Prospects
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01. Financial Results for Second Quarter Ended September 30, 2025
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4 Net sales reached the third highest ever and operating profit was the second highest ever level for the first half, while both ordinary income and net profit achieved record levels for the period. Profit reached a level similar to the same period a year earlier on the back of strong sales of overseas merchandising rights, despite a decline in sales due to the reaction to the strong streaming rights sales of “SLAM DUNK” and “GEGEGE no KITARO” in Japan and robust sales of goods of mainstay titles in the same period a year earlier. Profit margin improved significantly on the back of strong sales in the Licensing business both in Japan and overseas as well as the reduce in production cost compared to that of new animation films released in the same period a year earlier. (Million Yen) FY2026.3 First Half (April–September 2025) FY2026.3 2Q（July – September 2025） Results FY2025.3 First Half (April – September 2024) Results 2025.3 2Q (July – September 2024) 2026.3 1Q (April – June 2025) Results YonY Results YonY Results QonQ Net Sales 44,954 48,964 △8.2% 25,465 25,904 △1.7% 19,488 30.7% Gross Profit 24,817 24,280 2.2% 14,430 14,075 2.5% 10,386 38.9% SG&A 8,179 7,286 12.2% 4,370 3,767 16.0% 3,808 14.8% Operating Profit （Operating Profit Margin） 16,638 （37.0%） 16,993 （34.7%） △2.1% （2.3%） 10,060 (39.5%) 10,308 (39.8%) △2.4% (△0.3%) 6,578 （33.8％） 52.9% (5.8%) Ordinary Profit 17,904 17,099 4.7% 10,762 9,911 8.6% 7,141 50.7% Net Profit 12,980 12,219 6.2% 7,751 6,913 12.1% 5,229 48.2% Financial Results Summary
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5 Net sales declined in reaction to the strong sales of streaming rights in Japan and overseas of the movies “SLAM DUNK” and “GEGEGE no KITARO” and sales of goods for “SLAM DUNK” and other titles. Operating profit was roughly maintained at a level similar to the same period a year earlier, as decline in profit due to lower sales in the Film business was partly offset by reduced production costs compared to the same period a year earlier, in addition to the strong performance of the highly profitable overseas licensing business and the expansion of the business related to its own IPs in Japan and overseas. 48,964 △4,630 1,442 △1,113 174 116 44,954 16,993 △1,372 2,020 △182 △99 △720 16,638 Year-on-Year Changes (Million Yen) Net Sales Operating Profit(Million Yen)
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6 Both sales and profit declined in the Film segment primarily in reaction to the strong sales of streaming rights in Japan and overseas of “SLAM DUNK,” etc. in the same period a year earlier. Sales and profit increased on the back of higher sales of overseas gaming rights of the “DRAGON BALL” series and those of overseas merchandising rights of “ONE PIECE,” etc. In Sales of Goods, both sales and profit declined due primarily to the reaction to strong merchandising sales a year earlier of the movie “THE FIRST SLAM DUNK” despite steady performance of the “PRECURE” series’ shop business. In the Other segment, sales increased and profits declined despite strong performance by events featuring “PRETTY CURE” and “GIRLS BAND CRY” as labor costs, etc. rose. (Million Yen) 2025.3 2Q Results 2026.3 2Q Results % Change Film Net Sales 20,653 16,022 △22.4% Segment Profit 7,881 6,508 △17.4% Licensing Net Sales 22,217 23,660 6.5% Segment Profit 10,955 12,975 18.4% Sales of Goods Net Sales 4,708 3,595 △23.6% Segment Profit 513 330 △35.6% Others Net Sales 1,703 1,878 10.3% Segment Profit 161 61 △61.8% Total Net Sales Net Sales 48,964 44,954 △8.2% Operating Profit 16,993 16,638 △2.1% FY2026.3 2Q Consolidated Results Segment Breakdown *Figures for each segment include intra-company sales.
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7 (Million Yen) 2025.3 2Q Results 2026.3 2Q Results Net Sales 48,964 44,954 Film 20,653 16,022 Movies 389 292 TVs 1,336 1,214 DVDs 242 375 Overseas 14,497 12,304 Other 4,187 1,835 Licensing 22,217 23,660 Japan 8,769 7,945 Overseas 13,448 15,714 Sales of Goods 4,708 3,595 Others 1,703 1,878 Film（ -22.4％ year on year） • In the Movies segment, revenues declined due to the reaction to “THE FIRST SLAM DUNK” (rerun) and “THE BIRTH OF KITARO: THE MYSTERY OF GEGEGE,” which were running in the same period a year earlier, despite the release of “The Movie You and Idol Precure♪” • Revenues of the TV segment declined, as the number of titles on air declined from the same period a year earlier. • In the DVD segment, revenues increased driven by the strong performance of Blu-ray and DVD versions of “GIRLS BAND CRY.” • In the Overseas segment, revenues declined significantly in reaction to strong sales of videogram rights and DVD of the “DRAGON BALL” series and its broadcasting rights sales in the same period a year earlier, despite strong performance of “ONE PIECE” streaming rights sales. • In the Other segment, revenues markedly decreased due to a decline in streaming rights sales in Japan in reaction to the strong performances of the movies “THE FIRST SLAM DUNK” and “THE BIRTH OF KITARO: THE MYSTERY OF GEGEGE.” FY2026.3 2Q Results Segment Analysis (1) Film *Figures for each segment include intra-company sales.
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8 Revenues remained roughly at the same level in North America compared to the same period a year earlier on the back of strong sales of streaming rights for the “DRAGON BALL” series, despite the reaction to the strong sales of streaming rights of “SLAM DUNK” and “SAILOR MOON” in the same period of the previous year. In spite of having sales of major streaming rights similar to the previous year, revenues of online distribution (China) slightly decreased due to the difference in the exchange rate at the time of settlement. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2025.3 FY2026.3 Net Sales Trend in Net Sales of Film Oversea North America Europe Asia Cntral and South America 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2024.3 FY2026.3 Net Sales Breakdown of Net Sales by Business Online distribution (excluding China) Online distribution (China) Other Film * Due to consolidated accounting for subsidiaries, the left graph shows consolidated figures while the right graph shows our non-consolidated figures * The above qualitative information is with regard to the changes in performance for FY2026.3 2Q. Trends in Film Overseas
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9 - Box office revenue in Japan: More than 1.15 billion yen - Number of audience attendance in Japan: More than 930,000 - Box office revenue for the series: Third highest ever - Cumulative Blu-ray/DVD shipment: More than 110,000 disks 「GIRLS BAND CRY」「The movie You and Idol Precure ♪」 Film Business: Topics
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10 (Million Yen) 2025.3 2Q Results 2026.3 2Q Results Net Sales 48,964 44,954 Film 20,653 16,022 Movies 389 292 TVs 1,336 1,214 DVDs 242 375 Overseas 14,497 12,304 Other 4,187 1,835 Licensing 22,217 23,660 Japan 8,769 7,945 Overseas 13,448 15,714 Sales of Goods 4,708 3,595 Others 1,703 1,878 Others（ +10.3％ year on year） • Revenues increased mainly owing to the success of the events for the ”PRECURE” series and “GIRLS BAND CRY.” Sales of Goods（ -23.6％ year on year） • Revenues markedly decreased due to the reactionary decline in sales of goods for the movie “THE FIRST SLAM DUNK,” which performed well in the same period a year earlier, despite the strong shop business for the “PRECURE” series. Licensing（ +6.5％ year on year） • In Domestic Licensing, revenues decreased as sales of merchandising and gaming rights for the “ONE PIECE” and “DRAGON BALL” series had less momentum compared with a year earlier. • In Overseas Licensing, revenues markedly increased on the back of strong performance of merchandising rights of “ONE PIECE” and “DIGIMON” series and that of gaming rights of the “DRAGON BALL” series. FY2026.3 2Q Results Segment Analysis (2) Licensing, Sales of Goods, Others *Figures for each segment include intra-company sales.
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11 Revenues from “DRAGON BALL” series decreased, as sales of gaming rights and merchandising rights failed to reach the level a year ago immediately before the start of broadcast of “DRAGON BALL DAIMA.” Revenues from “ONE PIECE” decreased as sales of gaming and merchandising rights failed to match the momentum at the time of the anniversary event a year ago. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023/3 FY2024/3 FY2025/3 FY2026/3 Net Sales Trends in Net Sales of Domestic Licensing Others DRAGON BALL ONE PIECE 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2025.3 FY2026.3 Net Sales Trends in Net Sales of Domestic Licensing for DRAGON BALL SNS, app, house-use video game Toys, etc. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2025.3 FY2026.3 Net Sales Trend in Net Sales of Domestic Licensing for ONE PIECE SNS, app, house-use video game Toys, etc. Trends in Domestic Licensing * The above qualitative information is with regard to the changes in performance for FY2026.3 2Q.
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12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2025.3 FY2026.3 Net Sales Trends in Net Sales of Oversea Licensing North America Europe Asia South and Central America 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2023.3 FY2024.3 FY2025.3 FY2026.3 Net Sales Breakdown of Net Sales by Business Game (App and Online) Game (house-use and others) Other Licensing) Revenues increased in both North America and Europe thanks to strong sales of merchandising rights for “ONE PIECE” and “DIGIMON” series Revenues from sales of gaming rights increased, driven by the strong performance of the app game of “DRAGON BALL” series Revenues from other licensing increased driven by continued solid sales of “ONE PIECE” card games as well as figures, etc. Trends in Overseas Licensing * Due to consolidated accounting for subsidiaries, the left graph shows consolidated figures while the right graph shows our non-consolidated figures * The above qualitative information is with regard to the changes in performance for FY2026.3 2Q.
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13 「DRAGON BALL Z DOKKAN BATTLE 」「Ichibankuji PRETTY CURE」 「PRETTY STORE」（Osaka） 「Ichibankuji ONE PIECE」 「ONE PIECE CARD GAME」 GIRLS BAND CRY EXHIBITION OverseasJapan Sale of Goods Others Licensing, Sale of Goods, Others Businesses: Topics
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14 While revenues declined primarily due to the reaction to the strong sales of streaming rights both in Japan and overseas in the same period a year earlier, operating and other profits maintained roughly the same level on the back of robust sales of overseas merchandising rights, etc. Profitability of all levels significantly improved thanks to strong performances by product groups with high profitability in Licensing and the reduce in production cost compared with the same period a year earlier, when new films were introduced The increase in non-operating income was primarily caused by foreign exchange gains. 2025.3 2Q Results 2026.3 2Q Results Change % Change Net Sales 48,964 44,954 △4,010 △8.2% Cost of Sales 24,684 20,136 △4,547 △18.4% Gross Profit 24,280 24,817 537 2.2% SG&A 7,286 8,179 892 12.2% Operating Profit 16,993 16,638 △354 △2.1% Non-Operating Profit 879 1,271 391 44.5% Non-Operating Expenses 773 5 △768 △99.3% Ordinary Profit 17,099 17,904 804 4.7% Extraordinary Gain and Loss △157 350 508 - Net Profit Before Tax 16,941 18,254 1,313 7.8% Income Taxes 4,662 5,219 557 12.0% Income Taxes Adjustment 60 54 △5 △9.7% Minority Interest - - - - Net Profit 12,219 12,980 761 6.2% FY2026.3 2Q Results Review
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15 The increase in work in progress reflects the progress in production of the works to be released in the second half and the next fiscal year onward Investments and other assets declined due to reclassification of long-term deposits as current assets, despite gains on valuation of securities Account title 2025.3 2025.9 Change Account title 2025.3 2025.9 Change Cash and deposits 82,474 88,545 6,071 Notes and Accounts Payable-trade 22,125 18,373 △3,752 Notes and Accounts Receivable 29,376 22,252 △7,123 Other 11,909 11,541 △368 Work in process 8,281 10,834 2,552 Current liabilities 34,035 29,914 △4,120 Finished Products 109 91 △17 Non-current liabilities 3,745 4,649 903 Other 7,698 7,400 △298 Total liabilities 37,781 34,564 △3,217 Current assets 127,940 129,125 1,184 Shareholders' equity 138,553 142,491 3,938 Total Property and Equipment 8,558 8,594 35 Accumulated other comprehensive Profit 14,645 15,127 482 Intangible Assets 1,281 1,440 158 Total Net Assets 153,198 157,619 4,420 Investments and Other Assets 53,199 53,023 △175 Fixed Assets 63,039 63,058 19 Total assets 190,980 192,183 1,203 Total liabilities and net assets 190,980 192,183 1,203 Balance Sheet Digest (Million Yen)
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02. Outlook for FY2026.3
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17 For the first half, sales fell short of the initial plan mainly due to delays in some projects, while operating income exceeded the initial plan with strong performance by the highly profitable Overseas Licensing. In the second half, while we expect Overseas Licensing to continue to be strong, we are maintaining the initial forecast considering the uncertainties in the economic environment. （Million Yen） 2026.3 2Q 2026.3 Full-year estimates 2026.3 Progress Net Sales 44,954 88,000 51.1% Film 16,022 27,700 57.8% Movies 292 700 41.8% TVs 1,214 2,300 52.8% DVDs 375 400 93.8% Overseas 12,304 21,100 58.3% Other 1,835 3,200 57.3% Licensing 23,660 46,300 51.1% Domestic 7,945 17,700 44.9% Overseas 15,714 28,600 54.9% Sales of Goods 3,595 9,500 37.8% Others 1,878 4,500 41.7% Operating Profit 16,638 26,000 64.0% Ordinary Profit 17,904 26,700 67.1% Net Profit 12,980 19,100 68.0% Sales of Goods • The shop business, including “Pretty Cure Pretty Store,” is performing well. • The world's first permanent Dragon Ball store will open in the second half of the year, expected to contribute to increased sales. Lincensing • Domestic Licensing are expected to benefit from the launch of new titles in the “Digimon” series during the second half of the fiscal year. • Overseas licensing rights will continue to benefit from increased IP recognition, primarily through “One Piece” card games and local merchandise. • Some game titles of Our IPs might be accompanied with the downturn in China's app game market. Film • As in the previous fiscal year, sales of major streaming rights were recorded in the second quarter. • The major IPs are generally expected to perform as the initial forecast. • Other IPs are expected to perform well as awareness increases. Progress against Earnings Estimation
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03. Future Business Prospects
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19 ｢Hypergalactic」 ｢スパイシーキャンディ｣ 「花仙子之魔法香対論（原題）｣ 「DIGIMON BEATBREAK 」 ｢GOSU 」 ｢Surviving Science! 」「ELEMON 」 「The Movie You and Idol Precure ♪｣ ｢Butt Detective 」 「GIRLS BAND CRY」 The New Movie ｢Liberated from Paradise ｣ 「GIRLS BAND CRY Movie Compilation 」 ｢Kaiju Decode: The Ring of Aidara ｣ Planned Future Works Creating new IP / Library IPsActivation of existing IP ｢ONE PIECE 」 ｢THE ONE PIECE 」 （production studio ：WIT STUDIO ） 「You and Idol Precure ♪」 Large IP projects Other works Original projects for kids Works from business with Local production for local consumption Works from Hollywood-type business Overseas studio collaboration model projects Original projects for kids Other New works
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©TOEI ANIMATION ©Eiichiro Oda/Shueisha ©Eiichiro Oda/Shueisha, Toei Animation ©BIRD STUDIO/SHUEISHA, TOEI ANIMATION ©Bandai Namco Entertainment Inc. ©Toei Animation All Rights Reserved ©TOEI ANIMATION ©Eiichi Oda/Shueisha, Toei Animation ©Eiichi Oda/Shueisha, Toei Animation ©BIRD STUDIO/SHUEISHA, TOEI ANIMATION ©Bandai Namco Entertainment Inc. ©Akiyoshi Hongo, Toei Animation ©Bandai Namco Entertainment Inc. ©Eiichiro Oda/Shueisha, Toei Animation ©Eiichiro Oda/Shueisha,""THE ONE PIECE""production committe ©Toei Animation All Rights Reserved ©2025 You and Idol Precure the Movie Production Committee ©Troll/Poplar, ToeiAnimation ©Akiyoshi Hongo, Toei Animation ©2024“New Hana no Ko Lunlun” Project Committee ©Spicy Candy Project Committee © Gomdori co., Kim Jeung-Wook, Han Hyun-Dong／Mirae N／Ludens Media／Asahi Shimbun Publications／NHK・NEP・Toei Animation ©TOEI ANIMATION ©TOEI ANIMATION ©TOEI ANIMATION, Nitroplus / EFP Society © Monkey Prince Kingdom Film Partners ©Ryu Ki-woon & Moon Jeong-hoo / WEBTOON・Gosu Committee. ©TOEI ANIMATION・Rymation・AnalyzeLog © TSUBURAYA PRODUCTIONS, TOEI ANIMATION [Precautions regarding outlook] The contents described in this material are based on judgments and assumptions made with reference to information available as of the time of writing. The Company does not warrant that estimated figures, strategies or measures will necessarily be achieved.