Interim report
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Sanrio August 10 , 2026 Summary of Financial Results for the First Quarter of Fiscal Year Ending March 31 , 2027 ( FY2026 ) ( Three Months Ended June 30 , 2026 ) [ Japanese GAAP ] Company name : Stock code : Sanrio Company , Ltd. 8136 Listed Stock Exchange : Tokyo Stock Exchange URL : https://www.sanrio.co.jp/english/corporate/ir/ Representative : Inquiries : Tomokuni Tsuji , President and Chief Executive Officer Seiichiro Matsumoto , Managing Executive Officer TEL : + 81-3-3779-8058 Starting date of dividend payment : Preparation of supplementary materials for financial results : Yes Holding of financial results meeting : Yes ( for institutional investors and analysts ) ( All amounts are rounded down to the nearest million yen ) 1. Consolidated Financial Results for the First Quarter of FY2026 ( April 1 , 2026 – June 30 , 2026 ) ( 1 ) Consolidated results of operations ( Percentages represent year - on - year changes ) Net Sales Operating Profit Millions of yen Three months ended Jun . 30 , 2026 Three months ended Jun . 30 , 2025 Note : Comprehensive income ( millions of yen ) 52,035 43,097 % 20.7 49.1 Millions of yen 22,435 % 11.1 20,198 88.0 Ordinary Profit Millions of yen 22,624 20,205 % Profit Attributable to Owners of Parent Millions of yen % 12.0 15,516 72.6 14,190 9.3 37.8 Three months ended Jun . 30 , 2026 : 16,619 Three months ended Jun . 30 , 2025 : 11,755 Operating Profit before Consolidation Adjustments due to Differences in Fiscal Year - ends of Consolidated Subsidiaries Millions of yen ( up 41.4 % ) ( down 8.5 % ) % Three months ended Jun . 30 , 2026 Three months ended Jun . 30 , 2025 22,077 18,126 21.8 63.4 Basic Earnings per Share Diluted Earnings per Share Yen Yen Three months ended Jun . 30 , 2026 Three months ended Jun . 30 , 2025 12.80 11.96 12.75 11.79 Notes : 1. The Company conducted a 5 - for - 1 common stock split effective on April 1 , 2026. Basic earnings per share and diluted earnings per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year . 2. " Operating profit before consolidation adjustments due to differences in fiscal year - ends of consolidated subsidiaries " refers to figures based on the official financial statements of the subsidiaries before making the necessary adjustments for significant discrepancies in intercompany transactions arising from differences in fiscal year - ends . ( 2 ) Consolidated financial position As of Jun . 30 , 2026 Total Assets Millions of yen 247,713 234,684 Net Assets Millions of yen 163,375 155,971 As of Mar. 31 , 2026 Reference : Shareholders ' equity ( millions of yen ) As of Jun . 30 , 2026 : 163,171 2. Dividends FY2025 FY2026 FY2026 ( forecast ) 1Q - end Yen 2Q - end Yen 31.00 8.00 Equity Ratio % 65.9 66.4 As of Mar. 31 , 2026 : 155,785 Dividend per Share 3Q - end Yen Year - end Yen Total Yen 38.00 8.00 69.00 16.00 Notes : 1. Revisions to the most recently announced dividend forecast : None 2. The Company conducted a 5 - for - 1 common stock split effective on April 1 , 2026. Dividends per share for FY2025 are the actual amounts before the stock split and dividends per share for FY2026 ( forecast ) have been adjusted to reflect the stock split .
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3. Consolidated Forecast for FY2026 (April 1, 2026 – March 31, 2027) (Percentages represent year -on-year changes ) Net Sales Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Basic Earnings per Share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half 107,200 22.3 42,300 8.0 42,600 7.3 30,600 11.2 25.24 Full year 229,800 18.4 89,500 15.0 90,200 13.7 63,800 16.8 52.62 Operating Profit before Consolidation Adjustments due to Differences in Fiscal Year -ends of Consolidated Subsidiaries Millions of yen % First half 42,400 14.2 Full year 88,800 13.2 Notes: 1. Revisions to the most recently announced consolidated forecasts: None 2. “Operating profit before consolidation adjustments due to differences in fiscal year -ends of consolidated subsidiaries” refers to figures based on the official financial statements of the subsidiaries before making the necessary adjustments for significant discrepancies in intercompany transactions arising from differences in fiscal year -ends. * Notes (1) Significant changes in scope of consolidation during the period: None Newly added: - Excluded: - (2) Application of special accounting methods for presenting quarterly consolidated financial statements: None (3) Changes in accounting policies and accounting- based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: None 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: None 4) Restatements: None (4) Number of outstanding shares (common stock) 1) Number of outstanding shares at the end of the period (including treasury shares) As of Jun . 30, 2026: 1,277,041,515 shares As of Mar. 31, 202 6: 1,277,041,515 shares 2) Number of treasury shares at the end of the period As of Jun . 30, 2026: 64,611,364 shares As of Mar. 31, 202 6: 64,596,815 shares 3) Average number of shares outstanding during the period Three months ended Jun . 30, 2026:1,212,433, 795 shares Three months ended Jun . 30, 2025:1,186,581,443 shares Note: The Company conducted a 5- for-1 common stock split effective on April 1, 2026. Number of outstanding shares at the end of the period (including treasury shares), number of treasury shares at the end of the period and average number of shares outstanding during the period are calculated as if this stock split had taken place at the beginning of the previous fiscal year. Note 1: Review of the attached quarterly financial statements by a certified public accountant or an auditing firm: None Note 2: Cautionary statement with respect to forward- looking statements and other special items Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information currently available to the Company. These materials are not promises by the Company regarding future performance. Actual results may diffe r significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward- looking Statements” on page 5 of the attachments for forecast assumptions and notes of caution for usage.
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 1 Contents of Attachments 1. Qualitative Information on Quarterly Consolidated Financial Performance 2 (1) Explanation of Results of Operations 2 (2) Explanation of Financial Position 5 (3) Explanation of Consolidated Forecasts and Other Forward -looking Statements 5 2. Quarterly Consolidated Financial Statements and Notes 6 (1) Consolidated Balance Sheet 6 (2) Consolidated Statements of Income and Comprehensive Income 8 Consolidated Statement of Income For the Three-month Period 8 Consolidated Statement of Comprehensive Income For the Three -month Period 9 (3) Notes to Quarterly Consolidated Financial Statements 10 Going Concern Assumption 10 Significant Changes in Shareholders’ Equity 10 Segment and Other Information 10 Notes on Consolidated Statement of Cash Flows 11
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 2 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations The current fiscal year is the final year of t he Sanrio Group’ s three -year medium -term management plan, “From Uncertain Growth to Stable and Perpetual Growth,” covering the fiscal year ended March 31, 2025 through the fiscal year ending March 31, 2027. We are making progress with each of these three approaches: reviewing marketing and sales strategies to make Evergreen global IP; developing a foundation for global growth; and expanding IP portfolio and monetizing in multiple layers. In May 2025, we announced our long- term vision, “Lighting the Way to Bring Smiles to All.” We are implementing various initiatives aimed at achieving our goals by the close of the fiscal year ending March 31, 20 35. As announced in “ Notice Regarding Receipt of the Investigation Report from the Special Investigation Committee Regarding Allegations of Improper Compensation Received by a Managing Director and the Company’ s Future Course of Action” dated May 29, 2026, the Company has taken seriously the Special Investigation Committee ’s findings, analysis of the underlying causes, and recommendations. It has formulated measures that are being progressively implemented to prevent recurrence aimed at strengthening governance across the entire Group. In addition, as described in “ Notice Regarding Filing of a Lawsuit Against a Former Managing Director of the Company” dated July 30, 2026, the Company has filed a lawsuit against a former Managing Director . During the first quarter of the fiscal year under review , the popularity of a wide range of Sanrio characters, led by Hello Kitty, increased further. In particular, Pompompurin, who celebrated his 30th anniversary, attracted considerable attention by taking first place in the 2026 Sanrio c haracter ranking . In addition, the total number of unique followers across the Company ‘s social media platforms , including YouTube, exceeded 100 million worldwide , and the increasing popularity of its characters contributed to improved business performance. Moreover, the number of members of Sanrio+, a membership service for all Sanrio Group companies , increased by 220,000 from the end of March 2026 , and reached around 3. 48 million as of the end of June 2026. As a result of these factors, n et sales increased 20.7% year -on-year to 52.0 billion yen , operating profit increased 11.1% year-on-year to 22.4 billion yen, ordinary profit increased 12. 0% year-on-year to 22. 6 billion yen, and profit attributable to owners of parent increased 9 .3% year -on-year to 15.5 billion yen. Since the accounting period for all overseas consolidated subsidiaries runs from January to December , consolidated results for the first quarter under review included results of these subsidiaries during the period from January to March 2026.
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 3 Reportable Segment (100 millions of yen) Sales Segment profit (operating profit) First three months of FY202 5 FY202 6 Increase/ decrease Change (%) FY202 5 FY202 6 Increase/ decrease Change (%) Japan Product sales/others 181 203 21 12.0% 119 149 29 25.0% Royalties 62 90 27 44.1% Total 244 294 49 20.2% Europe Product sales/others 0 0 0 80.1% 6 8 2 38.9% Royalties 21 32 11 55.6% Total 21 33 12 56.0% North America Product sales/others 6 6 (0) (4.9)% 27 22 (5) (19.9)% Royalties 51 55 3 7.3% Total 57 61 3 6.0% Latin America Product sales/others 0 0 (0) (98.9)% 2 2 0 11.7% Royalties 6 10 4 73.6% Total 6 10 4 70.0% Asia Product sales/others 23 41 17 73.4% 57 55 (2) (4.9)% Royalties 76 79 2 3.1% Total 100 120 19 19.8% Adjustment - - - - (11) (13) (1) - Consolidated Product sales/others 212 251 39 18.5% 201 224 22 11.1% Royalties 218 268 50 23.0% Total 430 520 89 20.7% Notes: 1. Regional subsidiaries overseas pay the amount of royalties commensurate as the cost of sales while the Japanese parent company (the copyright holder) calculates this income as sales. Because consolidated transactions are eliminated, however, these are not included in Japan ’s sales figures stated above (although included in segment profit (operating profit)).Further, the above sales figures are “sales to customers,” and the inter -segment sales, which are not limited to the above -mentioned royalties, are eliminated as internal transaction sales. 2. Beginning with the first three months of FY2026, expenses related to the President‘s Office, previously included in “Adjustment,” are now reported in the “Japan” segment in order to more appropriately present the performance of the reportable segments. Segment profit (operating profit) for the first three months of FY2025 has been revised to facilitate direct comparisons. i. Japan : Net sales rose 20.2% year -on-year to 29 .4 billion yen and operating profit rose 25.0 % to 14.9 billion yen. 1. Product sales business/Licensing business In the product sales business, a significant increase in the number of domestic customers contributed to sales growth. This success was achieved through the popularity of a wide range of characters with fans, product development that reflected customer needs, and continued efforts to maximize sales opportunities in stores. In connection with the 2026 Sanrio c haracter ranking (April 9 –May 24), the Company featured a wide range of characters, which also helped strengthen its business foundation by expanding its fan base. The licensing business performed steadily as licensees featured a wide range of Sanrio characters, led by Hello Kitty and including Pompompurin. By category, the business performed well across a wide range of areas, including sundries , toys such as capsule toys, confectionery and food, and general merchandise. Operating profit rose due to a n increase in sales. 2. Theme park business At Sanrio Puroland, attendance remained strong not only on weekends but also on weekdays , resulting in record first-quarter attendance. A variety of events helped drive visitor numbers . In addition to two seasonal events — PUROSPRING PARTY (March 19 –June 2) and Puro Wish Matsuri (June 5 –July 7) —the park is also hosting the POMPOMPURIN 30th Anniversary event (April 10– December 31). At Harmonyland, l imited -edition products and meal menus connected to its 35th anniversary event, Harmonyland 35th Anniversary (launched in April 16), and other events are perform ing well. Operating profit increased as a result of a rise in sales, despite an increase in SG&A expenses due to the strengthening of the staffing system and costs for repairs at Harmonyland.
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 4 ii. Europe : Net sales rose 56 .0% year -on-year to 3 .3 billion yen and operating profit rose 38.9% year -on-year to 0.8 billion yen. In the licensing business, sales rose significantly, driven by the continued strategy of featuring multiple Sanrio characters together and successful initiatives with global brands . Growth was driven in particular by collaborations with major fast- fashion brands operating in various countries across Europe, initiatives with stationery and general merchandise licensees, and the toy category featuring multiple Sanrio characters together . In addition, with a view to enhancing brand value, the Company also held an event at the Women ‘s Alpine Ski World Cup. Operating profit in creased due to an increase in sales. iii. North America : Net sales rose 6 .0% year -on-year to 6 .1 billion yen and operating profit fell 19.9% year -on- year to 2.2 billion yen. In the licensing business, sales were strong in the toy and apparel categories . The toy category performed well, supported by initiatives with licensees handling a wide range of toys and by strong sales of collaboration products featuring popular characters from other companies. The apparel category also remained solid through initiatives with existing licensees. As part of its initiatives to expand customer touchpoints, the North American subsidiary held several collaborative events. These included events in partnership with professional sports leagues such as MLB (baseball), NHL (ice hockey), NBA (basketball) , NFL (American football) and MLS (soccer). Although sales were higher, o perating profit decreased due to an increase in marketing expenses. iv. Latin America : Net sales rose 70.0% year -on-year to 1 .0 billion yen and operating profit rose 11.7% year -on- year to 0. 2 billion yen . In Latin America as a whole, the licensing business performed well in the categories of apparel, health & beauty, stationery, accessories and bags. In Mexico, strong performances were seen in the apparel category, where children ’s clothing sold well , and the health & beauty category, where hygiene products performed well . In Brazil, the apparel category performed well, driven by children‘ s clothing featuring a wide range of Sanrio characters , while the stationery category also delivered strong results. In Latin America as a whole, major global brands performed well across multiple categories featuring Sanrio characters , including accessories and children‘ s bags. Operating profit increased due to sales growth and the impact of foreign exchange rate fluctuations. v. Asia: Net sales rose 19.8% year -on-year to 12.0 billion yen and operating profit fell 4.9% to 5 .5 billion yen. In mainland China , the Company continued to expand the range of product categories in which Sanrio characters are featured in its licensing business. While the toy category remained the core focus, it also placed greater emphasis on the interior and kitchen categories. Alongside the growing popularity of Hello Kitty, the Company is also promoting various characters including My Sweet Piano and Cogimyun. The product sales business promoted the development and sale of original products for the Chinese market in addition to expanding its store network. In South Korea, licensing business sales in the health & beauty, digital and toy categories were strong . Hello Kitty and Pompompurin contributed to sales growth. In Taiwan, the licensing business performed well in the toy and apparel categories. The strategic deployment of multiple Sanrio characters together proved successful. Notably, the popularity of Kuromi has surged, leading to significant sales growth. In the Hong Kong and Macau region, the licensing business saw growth in sales, driven by the success of the corporate special sales category, which implemented initiatives mainly in collaboration with t heme park s and financial institutions. In Southeast Asia, the strategy of featuring multiple Sanrio characters together contributed to sales growth in the licensing business . By category, in addition to a strong performance in the category of multiple toy s, the corporate special sales category also performed well, contributing to sales growth. While Hello Kitty maintain ed her
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 5 popularity , characters other than Hello Kitty grew in popularity, including Kuromi, My Melody and Cinnamoroll . Although sales were higher, o perating profit in Asia decreased due to an increase in SG&A expenses . (2) Explanation of Financial Position At the end of the first quarter of the current fiscal year, total assets stood at 2 47.7 billion yen, an increase of 13 .0 billion yen from the end of the previous fiscal year. The main increases were 10. 6 billion yen in cash and deposits , 1.7 billion yen in merchandise and finished goods, and 0.9 billion yen in other current assets. Liabilities increased 5.6 billion yen from the end of the previous fiscal year to 84 .3 billion yen. The main increases were 2.0 billion yen in n otes and accounts payable -trade , 1.8 billion yen in c ontract liabilities , 0.8 billion yen in provision for bonuses and 5.8 billion yen in other current liabilities . The main decrease w as 4.5 billion yen in income taxes payable . Net assets increased 7 .4 billion yen from the end of the previous fiscal year to 1 63.3 billion yen. The main increases were 6.3 billion yen in retained earnings and 1.3 billion yen in f oreign currency translation adjustment . As a result, the equity ratio was 65.9%, down 0.5 percentage points from the end of the previous fiscal year. (3) Explanation of Consolidated Forecasts and Other Forward -looking Statements There are no revisions to the consolidated forecast s for the fiscal year ending March 2027 , which were announced on June 23, 2026.
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 6 2. Quarterly Consolidated Financial Statements and Notes (1) Consolidated Balance Sheet (Millions of yen) FY202 5 (As of Mar. 31, 202 6) First quarter of FY202 6 (As of Jun. 30, 2026) Assets Current assets Cash and deposits 125,433 136,066 Notes receivable -trade 346 234 Accounts receivable -trade 25,152 24,356 Merchandise and finished goods 11,240 13,002 Work in process 27 27 Raw materials and supplies 552 365 Accounts receivable -other 2,406 738 Other 3,553 4,519 Allowance for doubtful accounts (145) (157) Total current assets 168,567 179,154 Non-current assets Property, plant and equipment Buildings and structures , net 6,037 6,367 Land 6,324 6,748 Other, net 7,622 7,929 Total property, plant and equipment 19,985 21,045 Intangible assets 6,629 7,689 Investments and other assets Investment securities 8,490 8,560 Retirement benefit asset 22,164 22,305 Deferred tax assets 2,648 2,330 Other 6,827 7,403 Allowance for doubtful accounts (629) (775) Total investments and other assets 39,502 39,824 Total non -current assets 66,117 68,559 Total assets 234,684 247,713 Liabilities Current liabilities Notes and accounts payable -trade 4,517 6,568 Short -term borrowings 3,942 3,365 Income taxes payable 11,774 7,258 Contract liabilities 6,779 8,606 Provision for bonuses 1,987 2,884 Provision for shareholder benefit program 95 80 Provision for point card certificates 16 23 Other 22,280 28,106 Total current liabilities 51,393 56,892 Non-current liabilities Convertible -bond-type bonds with share acquisition rights 7,251 7,238 Long-term borrowings 2,744 1,960 Retirement benefit liability 970 986 Other 16,353 17,259 Total non -current liabilities 27,319 27,445 Total liabilities 78,713 84,337
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 7 (Millions of yen) FY202 5 (As of Mar. 31, 202 6) First quarter of FY202 6 (As of Jun. 30, 2026) Net assets Shareholders ’ equity Share capital 10,261 10,261 Capital surplus 17,245 17,245 Retained earnings 132,411 138,713 Treasury shares (24,716) (24,716) Total shareholders ’ equity 135,202 141,503 Accumulated other comprehensive income Valuation difference on available- for-sale securities 69 138 Foreign currency translation adjustment 10,288 11,687 Remeasurements of defined benefit plans 10,224 9,842 Total accumulated other comprehensive income 20,583 21,668 Non-controlling interests 185 204 Total net assets 155,971 163,375 Total liabilities and net assets 234,684 247,713
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 8 (2) Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income (For the Three-month Period) (Millions of yen) First three months of FY202 5 (Apr. 1, 202 5 – Jun. 30, 202 5) First three months of FY202 6 (Apr. 1, 202 6 – Jun. 30, 202 6) Net sales 43,097 52,035 Cost of sales 8,331 11,352 Gross profit 34,765 40,683 Selling, general and administrative expenses 14,567 18,248 Operating profit 20,198 22,435 Non-operating income Interest income 223 292 Interest on securities 56 13 Dividend income 28 49 Foreign exchange gains - 183 Gain on investments in investment partnerships 20 - Other 49 82 Total non -operating income 378 622 Non-operating expenses Interest expenses 42 62 Foreign exchange losses 170 - Commission expenses 47 108 Loss on investments in investment partnerships - 20 Special investigation -related expenses - 216 Settlement expenses 97 - Other 12 23 Total non -operating expenses 370 432 Ordinary profit 20,205 22,624 Extraordinary income Gain on sale of non -current assets 0 - Total extraordinary income 0 - Extraordinary losses Loss on disposal of non -current assets 33 21 Impairment losses - 0 Total extraordinary losses 33 21 Profit before income taxes 20,171 22,603 Income taxes -current 4,618 5,815 Income taxes -deferred 1,277 1,256 Total income taxes 5,896 7,071 Profit 14,275 15,531 Profit attributable to non -controlling interests 85 14 Profit attributable to owners of parent 14,190 15,516
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 9 Consolidated Statement of Comprehensive Income (For the Three-month Period) (Millions of yen) First three months of FY202 5 (Apr. 1, 202 5 – Jun. 30, 202 5) First three months of FY202 6 (Apr. 1, 202 6 – Jun. 30, 202 6) Profit 14,275 15,531 Other comprehensive income Valuation difference on available -for-sale securities (19) 68 Foreign currency translation adjustment (2,231) 1,402 Remeasurements of defined benefit plans, net of tax (268) (382) Total other comprehensive income (2,519) 1,088 Comprehensive income 11,755 16,619 Total comprehensive income attributable to: Owners of parent 11,695 16,601 Non-controlling interests 59 18
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 10 (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Changes in Shareholders ’ Equity Not applicable. Segment and Other Information I. First three months of FY2025 (Apr. 1, 2025 – Jun. 30, 202 5) 1. Information related to sales and profit or loss for each reportable segment (Millions of yen) Reportable segment Adjustment (Note 1) Amounts shown on consolidated statement of income (Note 2) Japan Europe North America Latin America Asia Total Sales Customers 24,468 2,145 5,788 631 10,065 43,097 - 43,097 (Royalty income) ( 6,282) ( 2,108) ( 5,149) ( 618) ( 7,667) ( 21,826) ( -) ( 21,826) Inter-segment 7,132 62 44 29 1,684 8,953 (8,953 ) - (Royalty income) ( 6,574) ( 3) ( -) ( -) ( -) ( 6,577) ( (6,577) ) ( -) Total 31,600 2,207 5,833 660 11,749 52,051 (8,953 ) 43,097 Segment profit 11,927 616 2,750 251 5,794 21,339 (1,141 ) 20,198 Notes: 1. The minus 1, 141 million yen adjustment to segment profit is the sum of eliminations for inter -segment transactions and unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any particular segment. 2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income. 2. Information related to impairment losses on non -current assets, goodwill, etc. for each reportable segment Not applicable. II. First three months of FY2026 (Apr. 1, 2026 – Jun. 30, 202 6) 1. Information related to sales and profit or loss for each reportable segment (Millions of yen) Reportable segment Adjustment (Note 1) Amounts shown on consolidated statement of income (Note 2) Japan Europe North America Latin America Asia Total Sales Customers 29,420 3,346 6,133 1,073 12,061 52,035 - 52,035 (Royalty income) ( 9,054) ( 3,280) ( 5,525) ( 1,073) ( 7,905) ( 26,838) ( -) ( 26,838) Inter-segment 9,056 50 22 10 1,501 10,641 (10,641 ) - (Royalty income) ( 8,214) ( 2) ( -) ( -) ( -) ( 8,216) ( (8,216 )) ( -) Total 38,477 3,396 6,156 1,083 13,563 62,677 (10,641 ) 52,035 Segment profit 14,915 855 2,202 280 5,510 23,765 (1,330 ) 22,435 Notes: 1. The minus 1, 330 million yen adjustment to segment profit is the sum of eliminations for inter -segment transactions and unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any particular segment. 2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statement of income. 2. Information related to impairment losses on non -current assets, goodwill, etc. for each reportable segment Detailed explanations are omitted due to immateriality of the amount. 3. Information related to revisions for reportable segments Beginning with the first quarter of FY2026, expenses related to the Office of the President , previously included in “Adjustment,” are now reported in the “Japan” segment in order to more appropriately present the performance of the reportable segments. Segment information for the first three months of FY2025 has been revised to facilitate direct comparisons.
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Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2026 11 Notes on Consolidated Statement of Cash Flows The Consolidated Statement of Cash Flows for the first three months of FY202 6 has not been prepared. Depreciation (includes amortization expenses related to intangible assets) for the first three months of each fiscal year are as follows. (Millions of yen) First three months of FY202 5 (Apr. 1, 202 5 – Jun. 30, 202 5) First three months of FY202 6 (Apr. 1, 202 6 – Jun. 30, 202 6) Depreciation 631 913 This financial report is solely a translation of “ Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.