Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( Under Japanese GAAP ) TOKYOTOKEIBA Co. , Ltd. August 7 , 2026 FASF MEMBERSHIP Tokyo Stock Exchange https://www.tokyotokeiba.co.jp/ Company name : Listing : Securities code : 9672 URL : Representative : Inquiries : Telephone : Takashi Takeichi , President and Representative Director Mitsuhiro Matsumoto , General Manager of Finance Department + 81-3-5767-9731 Scheduled date to file semi - annual securities report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results briefing : August 14 , 2026 September 1 , 2026 Yes Yes ( for analysts and institutional investors ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated Financial Results for the Six Months Ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended June 30 , 2026 Millions of yen 19,824 % Millions of yen 2.7 7,357 % Millions of yen % Millions of yen % 3.9 7,400 4.6 4,940 2.4 June 30 , 2025 19,298 3.4 7,079 8.4 7,077 8.2 4,825 7.5 Note : Comprehensive income For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : ¥ 5,313 million [ 9.1 % ] ¥ 4,871 million [ 2.4 % ] Basic earnings per share Diluted earnings per share Six months ended June 30 , 2026 Yen Yen June 30 , 2025 189.76 180.79 ( 2 ) Consolidated financial position Total assets Net assets Equity ratio As of June 30 , 2026 December 31 , 2025 Millions of yen 126,182 125,785 Millions of yen % 98,337 94,902 77.8 75.3 Reference : Equity As of June 30 , 2026 : As of December 31 , 2025 : ¥ 98,155 million ¥ 94,761 million
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2. Dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended December 31, 2025 − 45.00 − 73.00 118.00 Fiscal year ending December 31, 2026 − 60.00 Fiscal year ending December 31, 2026 (Forecast) − 86.00 146.00 Note: Revisions to the forecast of dividends most recently announced: None 3. Consolidated Financial Result Forecasts for the Fiscal Year Ending December 31, 2026 (from January 1, 2026 to December 31, 2026) (Percentages indicate 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 Full year 42,597 2.0 15,827 2.7 15,860 2.7 10,792 3.2 415.34 Note: Revisions to the financial result forecast most recently announced: None
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*Notes (1) Significant changes in the scope of consolidation during the period: None Newly included: − companies (Company name: − ) Excluded: − companies (Company name: − ) (2) Adoption of accounting treatment specific to the preparation of interim consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies other than (i) above: None (iii) Changes in accounting estimates: None (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of June 30, 2026 28,084,854 shares As of December 31, 2025 28,764,854 shares (ii) Number of treasury shares at the end of the period As of June 30, 2026 2,043,934 shares As of December 31, 2025 2,727,609 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Six months ended June 30, 2026 26,038,514 shares Six months ended June 30, 2025 26,691,004 shares *Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm. *Proper use of financial result forecasts and other special matters (Cautionary note on forward-looking statements, etc.) Financial result forecasts and other forward-looking statements herein are based on the information currently in the Company’s possession or the assumptions it deems reasonable, and are not intended as the Company’s promise to achieve them. Actual financial results, etc. may differ significantly from these forecasts due to diverse factors. (How to obtain supplementary material on financial results) The supplementary material on financial results is posted on the Company’s website.
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1 Table of Contents - Attachments 1. Overview of Business Performance for the Six Months Ended June 30, 2026 .............................................. 2 (1) Overview of Operating Results for the Period under Review ...................................................................... 2 (2) Overview of Financial Position for the Period under Review ..................................................................... 3 (3) Explanation of Consolidated Financial Result Forecast and Other Forward-looking Information .......... 4 2. Interim Consolidated Financial Statements and Principal Notes ................................................................. 5 (1) Interim Consolidated Balance Sheets ....................................................................................................... 5 (2) Interim Consolidated Statements of Income and Comprehensive Income ............................................... 7 (3) Interim Consolidated Statements of Cash Flows ..................................................................................... 9 (4) Notes to Interim Consolidated Financial Statements ............................................................................... 10 (Notes on going concern assumption) .................................................................................................... 10 (Notes in case of significant changes in shareholders’ equity) .............................................................. 10 (Notes to segment information, etc.) ...................................................................................................... 10
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2 1. Overview of Business Performance for the Six Months Ended June 30, 2026 (1) Overview of Operating Results for the Period under Review During the six months ended June 30, 2026, the Japanese economy was expected to recover moderately, supported by improvements in the employment and income conditions and the effects of various policies. However, the economic outlook remains unclear due to factors such as the impact of the situation in the Middle East, which requires continued close attention. While the impact of the situation in the Middle East on the business of TOKYOTOKEIBA Co., Ltd. (the “Company”) and its subsidiaries (collectively, the “Group”) has been limited to date, the Group will continue to closely monitor future developments amid ongoing uncertainty in the external environment. Under these conditions, local horse racing across Japan was on a robust trend, with the total number of visitors and the total betting ticket sales exceeding those of the same period of the previous year. The sales related to the Group’s public competition business through SPAT4, the official online betting service for local horse racing, increased compared to the same period of the previous year. As a result, for the six months ended June 30, 2026, the Group recorded net sales of ¥19,824 million (up 2.7% year on year), operating profit of ¥7,357 million (up 3.9% year on year), ordinary profit of ¥7,400 million (up 4.6% year on year), and profit attributable to owners of parent of ¥4,940 million (up 2.4% year on year). Operating results by segment are as follows. Public competition business Oi Racecourse held horse races for 47 days. During this period, the Group took steps to promote the use of reserved seats and enhance customer satisfaction with enhanced convenience, including upgrading the reserved seats on the third floor of the L-WING stand to individual seats equipped with USB ports and power outlets. SPAT4 sold betting tickets for a cumulative total of 634 days and 7,324 local horse races across Japan. This year marks the 30th anniversary of the launch of SPAT4. To increase the recognition of the service, a nationwide series of in-person events featuring the original character SUPAHOSU is being held sequentially at local racecourses across Japan. As part of efforts to strengthen the service, the bulk betting feature and the SPAT4 LOTO bet combination builder have been added to the official SPAT4 app. These new functions are intended to enhance usability of the app. Through these and other measures, including continuously taking countermeasures for gambling addiction, the Group is striving to ensure that users can enjoy local horse racing more comfortably over the long term. Isesaki Auto Racetrack held on-site auto races for 58 days (45 days for regular races and 13 days for After 5 night races) and sold off-track tickets for other racecourses for a cumulative total of 116 days. Sales exceeded the same period of the previous fiscal year, driven by an increase in the number of regular race days and GI races. As part of the project for facility restructuring and functional consolidation following the closure of the main stand at Isesaki Auto Racetrack, both the Isesaki off-track betting facility, which sells tickets for local horse racing, and the J-PLACE Isesaki off-track betting facility, which sells tickets for central horse racing, were relocated to the West Ticketing Area near the main gate on March 21. This is intended to improve customer convenience. The fourth floor of the Green Stand, vacated following the relocation, was renovated and reopened on June 21 as a premium viewing area for auto racing. As a result, the public competition business recorded net sales of ¥14,972 million (up 2.9% year on year), and segment profit of ¥6,361 million (up 2.5% year on year). Amusement park business In the amusement park business, the Group held pre-opening events at Tokyo Summerland with family-friendly activities in some outdoor pool areas exclusively during Golden Week (consecutive Japanese national holidays from late April to early May), in an effort to strengthen customer attraction. Meanwhile, the Group experienced a decrease in the number of visitors to its golf driving range and a decrease in rental income following the discontinuation of the swimming school business in Ishinomaki in July last year. As a result of the impact of these events, among other factors, net sales for the overall amusement park business decreased. From July onwards, the Group intends to improve business performance by attracting new customers and increasing per- customer spending through collaboration with the 2.5D idol group VOISING and the introduction of paid premium seats, in addition to the operation of the popular MONSTER STREAM pool. As a result, the amusement park business recorded net sales of ¥654 million (down 5.5% year on year), and
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3 segment loss of ¥536 million (compared with segment loss of ¥502 million in the same period of the previous year). Warehouse leasing business In the warehouse leasing business, Narashino Akanehama No. 2 warehouse, which was completed in March 2024, was operating smoothly and the multi-tenant Katsushima Area 2 warehouse continued to maintain its high occupancy rates. At KuraFit, a shared warehouse opened in September 2022, a new Phase 2 area was launched in January this year. This is part of efforts to expand the warehouse area while maintaining functionality and upgrading equipment at existing facilities, with a view to maintaining high occupancy rates and achieving continued business growth. As a result, the warehouse leasing business recorded net sales of ¥3,093 million (up 2.4% year on year) and segment profit of ¥2,067 million (up 3.0% year on year). Service business In the service business, tenant income from Wira Oi and other existing facilities managed and operated by the Group continued to remain robust. In the air conditioning equipment business, cost reductions were achieved on major construction projects. These factors, among others, contributed to year-on-year increases in sales and profit across the segment. Furthermore, the Group held Spring Festa 2026 at Wira Oi in April, featuring a variety of events, including workshops in collaboration with tenants and businesses involved, and attracted a large number of customers. This event was also intended to revitalize the local economy. As a result, the service business recorded net sales of ¥1,155 million (up 3.4% year on year), and segment profit of ¥265 million (up 125.9% year on year) partly due to the absence of real estate acquisition tax for the Wira Oi Annex recorded in the same period of the previous year. (Millions of yen) Reportable segment Net sales Segment profit (loss) Amount Year-on-year change Amount Year-on-year change Public competition business 14,972 2.9% 6,361 2.5% Amusement park business 654 (5.5)% (536) － Warehouse leasing business 3,093 2.4% 2,067 3.0% Service business 1,155 3.4% 265 125.9% Elimination of inter-segment transactions, etc. (50) － (800) － Total 19,824 2.7% 7,357 3.9% (2) Overview of Financial Position for the Period under Review (i) Assets, liabilities and net assets Total assets as of June 30, 2026 increased by ¥397 million from the end of the previous fiscal year to ¥126,182 million. This was mainly due to increases in trade notes, accounts receivable and contract assets of ¥1,288 million and securities of ¥1,000 million, despite decreases in property, plant and equipment of ¥774 million and intangible assets of ¥901 million. Total liabilities as of June 30, 2026 decreased by ¥3,037 million from the end of the previous fiscal year to ¥27,844 million. This was mainly due to decreases in income taxes payable of ¥249 million, accrued consumption taxes of ¥1,193 million, accounts payable - other of ¥373 million, and long-term borrowings (including current portion of long-term borrowings) of ¥850 million. Total net assets as of June 30, 2026 increased by ¥3,434 million from the end of the previous fiscal year to ¥98,337 million. This was mainly due to the recording of profit attributable to owners of parent of ¥4,940 million, despite appropriation of surplus with the payment of year-end dividend of ¥1,900 million. As a result, the equity ratio was 77.8%, an increase from 75.3% at the end of the previous fiscal year.
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4 (ii) Cash flows Cash and cash equivalents at the end of the period under review increased by ¥2,488 million from the end of the previous fiscal year to ¥16,732 million. This is mainly due to cash inflows of profit before income taxes of ¥7,425 million and depreciation of ¥3,263 million being offset by cash outflows mainly due to increase in trade receivables of ¥1,288 million, income taxes paid of ¥2,594 million, purchase of property, plant and equipment of ¥1,587 million, and dividends paid of ¥1,891 million. Cash flows from operating activities Net cash provided by operating activities during the period under review was ¥4,911 million (compared with net cash provided of ¥9,416 million in the same period of the previous fiscal year). The principal factors were cash inflows mainly of profit before income taxes of ¥7,425 million and depreciation of ¥3,263 million, which offset cash outflows mainly of increase in trade receivables of ¥1,288 million and income taxes paid of ¥2,594 million. Cash flows from investing activities Net cash provided by investing activities during the period under review was ¥275 million (compared with net cash used of ¥3,610 million in the same period of the previous fiscal year). The principal factors were cash inflows mainly of net decrease in time deposits of ¥2,999 million, which offset cash outflows mainly of net increase in short-term investment securities of ¥1,000 million and purchase of property, plant and equipment of ¥1,587 million. Cash flows from financing activities Net cash used in financing activities during the period under review was ¥2,698 million (compared with net cash used of ¥2,750 million in the same period of the previous fiscal year). The principal factors were cash outflows mainly of repayments of long-term borrowings of ¥850 million and dividends paid of ¥1,891 million. (3) Explanation of Consolidated Financial Result Forecast and Other Forward-looking Information No revisions have been made to the consolidated financial result forecast for the full year for the fiscal year ending December 31, 2026, which was announced on February 13, 2026.
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5 2. Interim Consolidated Financial Statements and Principal Notes (1) Interim Consolidated Balance Sheets (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 17,466,665 16,955,352 Trade notes, accounts receivable and contract assets 4,605,293 5,893,480 Securities 4,400,000 5,400,000 Inventories 230,648 254,927 Advances paid 297,980 400,486 Other 161,760 214,503 Total current assets 27,162,349 29,118,750 Non-current assets Property, plant and equipment Buildings, net 27,705,978 27,167,969 Facilities attached to buildings, net 8,131,196 7,831,865 Structures, net 9,673,936 9,301,286 Machinery, equipment and vehicles, net 830,068 677,903 Land 32,265,664 32,265,664 Construction in progress 4,153,207 5,168,670 Buildings in trust, net 1,113,861 1,082,784 Facilities attached to buildings in trust, net 95,150 83,841 Land in trust 2,174,126 2,174,126 Other, net 2,314,203 1,928,535 Total property, plant and equipment 88,457,395 87,682,647 Intangible assets Software 4,625,042 3,787,975 Software in progress 226,242 161,474 Total intangible assets 4,851,284 3,949,449 Investments and other assets Investment securities 2,665,683 3,149,852 Long-term prepaid expenses 74,742 47,161 Deferred tax assets 1,767,977 1,548,116 Long-term advances paid 721,877 601,564 Other 83,870 84,990 Total investments and other assets 5,314,152 5,431,684 Total non-current assets 98,622,832 97,063,782 Total assets 125,785,181 126,182,532
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6 (Thousands of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Trade accounts payable 1,189,811 869,566 Short-term borrowings 16,600 66,640 Current portion of bonds payable 10,000,000 10,000,000 Current portion of long-term borrowings 1,700,000 1,575,000 Accounts payable - other 1,211,647 837,732 Income taxes payable 2,758,756 2,508,815 Accrued consumption taxes 1,788,721 595,014 Provision for bonuses 198,789 114,501 Provision for bonuses for directors (and other officers) 12,980 - Provision for point card certificates 1,093,240 1,136,796 Other 945,074 867,766 Total current liabilities 20,915,621 18,571,833 Non-current liabilities Long-term borrowings 5,750,000 5,025,000 Leasehold and guarantee deposits received 2,515,493 2,539,388 Retirement benefit liability 1,283,291 1,256,808 Asset retirement obligations 376,239 379,114 Deferred tax liabilities 30,880 62,859 Other 10,695 9,945 Total non-current liabilities 9,966,600 9,273,117 Total liabilities 30,882,221 27,844,950 Net assets Shareholders’ equity Share capital 10,586,297 10,586,297 Capital surplus 6,792,464 6,797,227 Retained earnings 88,839,783 88,802,592 Treasury shares (12,353,097) (9,258,111) Total shareholders’ equity 93,865,448 96,928,005 Accumulated other comprehensive income Valuation difference on available-for-sale securities 896,278 1,227,836 Total accumulated other comprehensive income 896,278 1,227,836 Non-controlling interests 141,233 181,739 Total net assets 94,902,960 98,337,581 Total liabilities and net assets 125,785,181 126,182,532
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7 (2) Interim Consolidated Statements of Income and Comprehensive Income Interim Consolidated Statements of Income (Thousands of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Net sales 19,298,649 19,824,373 Cost of sales 11,138,495 11,340,245 Gross profit 8,160,153 8,484,128 Selling, general and administrative expenses 1,080,438 1,126,800 Operating profit 7,079,714 7,357,328 Non-operating income Interest income 7,698 49,833 Dividend income 19,136 27,986 Subsidies for employment adjustment, etc. 400 - Other 8,116 9,615 Total non-operating income 35,351 87,435 Non-operating expenses Interest expenses 37,226 43,890 Other 817 61 Total non-operating expenses 38,044 43,952 Ordinary profit 7,077,022 7,400,811 Extraordinary income Contribution received for construction 2,500 - Subsidy income 64,500 24,800 Gain on sale of non-current assets 26,374 - Insurance claim income 23,237 - Total extraordinary income 116,612 24,800 Profit before income taxes 7,193,635 7,425,611 Income taxes – current 2,315,570 2,344,885 Income taxes – deferred 10,267 99,230 Total income taxes 2,325,837 2,444,115 Profit 4,867,797 4,981,495 Profit attributable to non-controlling interests 42,219 40,505 Profit attributable to owners of parent 4,825,578 4,940,989
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8 Interim Consolidated Statements of Comprehensive Income (Thousands of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Profit 4,867,797 4,981,495 Other comprehensive income Valuation difference on available-for-sale securities 3,561 331,558 Total other comprehensive income 3,561 331,558 Comprehensive income 4,871,359 5,313,054 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,829,140 5,272,548 Comprehensive income attributable to non-controlling interests 42,219 40,505
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9 (3) Interim Consolidated Statements of Cash Flows (Thousands of yen) For the six months ended June 30, 2025 For the six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 7,193,635 7,425,611 Depreciation 3,241,338 3,263,019 Increase (decrease) in provision for bonuses for directors (and other officers) - (12,980) Increase (decrease) in provision for bonuses 3,995 (84,288) Increase (decrease) in retirement benefit liability (7,437) (26,482) Increase (decrease) in provision for point card certificates 82,365 43,555 Interest and dividend income (26,834) (77,819) Interest expenses 37,226 43,890 Loss (gain) on sale of property, plant and equipment (26,374) - Decrease (increase) in trade receivables 524,799 (1,288,186) Decrease (increase) in inventories (22,662) (24,278) Decrease (increase) in long-term advances paid 437,570 120,312 Increase (decrease) in trade payables (258,888) (320,245) Increase (decrease) in accrued consumption taxes 922,034 (1,193,706) Other, net (271,918) (395,960) Subtotal 11,828,846 7,472,442 Interest and dividends received 26,834 77,819 Interest paid (36,940) (43,575) Income taxes paid (2,402,193) (2,594,825) Net cash provided by (used in) operating activities 9,416,548 4,911,860 Cash flows from investing activities Net decrease (increase) in time deposits (22) 2,999,892 Net decrease (increase) in short-term investment securities (1,600,000) (1,000,000) Purchase of property, plant and equipment (1,661,847) (1,587,753) Proceeds from sale of property, plant and equipment 115,574 - Purchase of intangible assets (373,738) (135,133) Other, net (90,779) (1,941) Net cash provided by (used in) investing activities (3,610,813) 275,063 Cash flows from financing activities Net increase (decrease) in short-term borrowings 50,040 50,040 Repayments of long-term borrowings (850,000) (850,000) Purchase of treasury shares (4,547) (5,793) Dividends paid (1,940,644) (1,891,840) Other, net (5,495) (750) Net cash provided by (used in) financing activities (2,750,647) (2,698,344) Net increase (decrease) in cash and cash equivalents 3,055,087 2,488,579 Cash and cash equivalents at beginning of period 15,867,141 14,243,423 Cash and cash equivalents at end of period 18,922,229 16,732,003
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10 (4) Notes to Interim Consolidated Financial Statements (Notes on going concern assumption) Not applicable. (Notes in case of significant changes in shareholders’ equity) Not applicable. (Notes to segment information, etc.) [Segment information] I. For the six months ended June 30, 2025 (from January 1, 2025 to June 30, 2025) Information on net sales and profit or loss by reportable segment (Thousands of yen) Reportable segment Adjustment (Note 1) Amount recorded in Interim Consolidated Statements of Income (Note 2) Public Competition Business Amusement Park Business Warehouse Leasing Business Service Business Total Net sales Net sales to outside customers 14,547,859 682,290 3,021,828 1,046,670 19,298,649 － 19,298,649 Inter-segment net sales or transfers 2,309 10,516 － 70,189 83,015 (83,015) － Total 14,550,168 692,806 3,021,828 1,116,860 19,381,664 (83,015) 19,298,649 Segment profit (loss) 6,206,779 (502,917) 2,007,615 117,375 7,828,853 (749,138) 7,079,714 (Notes) 1. The adjustment to segment profit (loss) of ¥(749,138) thousand includes ¥4,853 thousand in elimination of intersegment transactions and ¥(753,992) thousand in company-wide expenses that have not been allocated to each reportable segment. Company-wide expenses are primarily selling, general and administrative expenses that are not attributable to the reportable segments. 2. Segment profit (loss) is adjusted with the operating profit under the interim consolidated statements of income.
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11 II. For the six months ended June 30, 2026 (from January 1, 2026 to June 30, 2026) Information on net sales and profit or loss by reportable segment (Thousands of yen) Reportable segment Adjustment (Note 1) Amount recorded in Interim Consolidated Statements of Income (Note 2) Public Competition Business Amusement Park Business Warehouse Leasing Business Service Business Total Net sales Net sales to outside customers 14,968,510 644,620 3,093,000 1,118,243 19,824,373 － 19,824,373 Inter-segment net sales or transfers 3,531 9,860 － 36,965 50,357 (50,357) － Total 14,972,042 654,480 3,093,000 1,155,208 19,874,731 (50,357) 19,824,373 Segment profit (loss) 6,361,359 (536,520) 2,067,539 265,157 8,157,535 (800,207) 7,357,328 (Notes) 1. The adjustment to segment profit (loss) of ¥(800,207) thousand includes ¥9,640 thousand in elimination of intersegment transactions and ¥(809,847) thousand in company-wide expenses that have not been allocated to each reportable segment. Company-wide expenses are primarily selling, general and administrative expenses that are not attributable to the reportable segments. 2. Segment profit (loss) is adjusted with the operating profit under the interim consolidated statements of income.