TOMY Company, Ltd. Company Information - TSE Securities Code: 7867

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TOMY Company, Ltd. Company Information - TSE Securities Code: 7867
TOMY Company, Ltd.
Company Information

TSE Securities Code: 7867
TOMY Company, Ltd. Company Information - TSE Securities Code: 7867
Overview of TOMY
            Company Overview                                              Group Companies
                                                                                                     As of Mar 31, 2018
• TOMY Company, Ltd. (TOMY) was founded in
  1924. We have been in business for 90 years.               Japan           T-ARTS
                                                                             TOMY TEC
• Founding Philosophy:
                                                                             TOMY Marketing
     Let’s excite the world’s markets with our                              Company, Ltd , etc         Number of
      outstanding products.                                  North           TOMY Holdings             consolidated
     Our sincerity and diligence will contribute            America         TOMY International,       subsidiaries:
                                                             Europe and                                    34
      to society and lead to our own success and                             etc
                                                             Oceania
      happiness.
                                                             Asia            TOMY Hong Kong
• Business Domains:                                                          TOMY Thailand , etc

     Toy business : Planning, developing and                        Distribution of Ownership among
      manufacturing products such as toys, and                                  Shareholders
      baby products.
     Toy-Periphery business:                                                                        As of Mar 31, 2018

      Manufacturing and selling of capsule toys,                                  17.58%
      candy toys and railway models.
• We are listed on the first section of the Tokyo                     11.72%           Ownership Ratio 44.81%

  Stock Exchange and have a market cap of
  ¥108 billion as of May 11, 2018
• Number of Employees 2,199 (consolidated, Mar                 Individual Investors 23.87%
  2018)                                                        Financial Institutions
                                                               Other Corporations                                      1
                                                    Page 1     Foreign Corporations and Investors
Overview of TOMY
              TOPIC1                                        TOPIC3           TOPIC4                                  (JPY in billion)
                                         TOPIC2

                                                                                  TOPIC5
               1,856 1,818 1,924 1,805 1,787                1,872
                                                                     1,787                                   1,773
1,900                                             1,594                                        1,630 1,676
                                                                             1,548 1,499                             223
                                                                                                                         190
                                                                     168                                     162
1,200                                             145       146
        832                                                                                111                       131
                                                                                    115              116                 120
                                                  104       103      101     100
                                    93     89
                             79                                                                              77
 500        60                      60
          44           38
                             47           50                                              24                             50
                                                                             25     33              26

                       (4)
-200                                                                                                                     -20
        2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
                Net Sales (lef t)                 Operating Income (right)                               EBITDA(right)

               • TAKARA was merged into TOMY, and this absorption-type merger resulted in a substantial
 TOPIC1
                 increase in net sales despite the recording of a large extraordinary loss.
               • Operating income was boosted, not only by a reduction in products with low profitability, but
 TOPIC2
                 also by hit performances of the Metal Fight Beyblade products for boys and the products related
                 to the Transformers movie, as well as group-wide business restructuring.
 TOPIC3        • Acquisition of U.S. toy manufacturer RC2 boosted net sales.

 TOPIC4        • Conducted solicitation for voluntary retirement and started business structural reforms in
                 response to struggling toy sales in Japan and worsening of overseas business performances.
 TOPIC5        • Decision to sell unprofitable video game wholesaler subsidiary (impact on net sales of -¥30.7 billion
                 YoY) and to partially withdraw business in China led to the bottoming out of business performance.
                                                        2                                                                           2
Core Toy Brands in Japan
In addition to our line-up of many long-standing toy products with stable sales, we
continue to create new hit products.
                    Tomica                                          Plarail                            Licca Doll
 •       Launched in 1970                          •   Plarail is a toy train and plastic truck   •   Licca is a fashion doll series,
                                                       system based on the actual trains              celebrating its 50th anniversary in 2017
 •       Tomica is Japan‘s first palm-sized
                                                   •   Long-selling product over 50 years             (Total sales volume is over 60 million)
         diecast toy miniature car based on
         Japanese vehicles                             since its launch                           •   Using SNS to promote the brand
 •       More than 930 kinds of vehicles           •   More than 1,370 kinds of trains
         launched, sold over 600 million pieces.       launched, sold 160 million pieces.

              Duel Masters                         Amusement Machines                                      Railroad models (N gauge)
                                                   •   Arcade games for children                                 •   No.1 share in Japan
     •    Trading card games highly popular
          for more than ten years                  •   Main games are Prichan, Pokémon Ga-Olé                    •   Wide range of products from
                                                                                                                     rail cars to dioramas

                                                                         3                                                                         3
Overseas Core Toy Brands
    We will further expand sales of toys of Japanese origin, TOMY International toys and
    baby merchandise
    Global toys born in Japan                                                                                                   •       Global agriculture vehicle toys
                                                                                                                                •       Wide range of products line from
                                                                                                                                        preschool to high-end replicas

                                               •   More than 500 million products sold
                                               •   Launched over 130 countries around the world

                                                                                                                                    •    Age-appropriate baby and infant
                                                                                         •   Wide range of products including            educational toys
                                                                                             baby bottles, toddler cups and         •    Developed with the advice of the
•   The third generation Beyblade launched in 2015                                           plates, baby carriages, etc.                infant specialist
•   350 million units sold over 80 countries

                                                                               4                                            TOMY International                              4
Toy-Periphery Products and Strategy
Leveraging popular brand content to maximize revenue opportunities
                      Miscellaneous daily                    Books
                      goods

    Tomica Shop                                                      Amusement
                                                                     Machines

      Apparel                                                        Capsule Toys

                               DVD               Candy-Toy
                                            Page 5                                  5
Execute Three Plans Including the Medium-Term Business Strategy

         Medium-Term Management Plan (FY2018–2020)
     Take on the Challenge toward New Growth

                              Page 6                              6
Experienced Management, Strong Board
   •    Together with our three directors and three Audit & Supervisory Board Members from outside
        the company, TOMY is committed to reinforced corporate governance
   •    Kazuhiro Kojima Appointed as Representative Director & President of TOMY Company, and
        this marked the start of our new corporate management in January 2018
   •    We introduced a two-person company representative system to promote greater management
        agility and speed.
  Kantaro Tomiyama •           In June 2015, appointed Representative
  Representative               Director & Chairman of TOMY
  Director & Chairman •        Over 30 years experience in toy industry
                           •   Led the merger of TOMY and Takara
                           •   Performed difficult restructuring initiatives
                               decisively after taking the President role in
                               1986
                           •   Received B.A. in Sociology from the
                               University of Hull in England                                 4inside               3 outside
                           •   Grandson of TOMY’s founder, Eichiro                          directors              directors
                               Tomiyama, and son of former President,                         57%     Board Members 43%
                               Masanari Tomiyama
                                                                                                      7 directors

Kazuhiro Kojima            •   Appointed as Representative Director & President of TOMY
Representative Director,       Company, Ltd. in January 2018
President & COO            •   1983     Graduated from the University of Tokyo and joined
                               Mitsubishi Corporation
                           •   2008     Executive Officer of Marunouchi Capital Co., Ltd.
                           •   2009     Outside Director of TOMY Company, Ltd.
                           •   2012     Board Director and Senior Executive Officer
                           •   2017     Representative Director, COO & CFO
                           •   Over 15 years of experience related to venture capital and
                               the buyout business
                           •   Achievements in creating more efficient production and
                               logistics and in improving businesses in Europe

                                                                               7                                               7
CSR Activities
The TOMY Group takes an original approach to CSR activities that is quite different
from other companies. TOMY has a long-term commitment to making advances in these
areas.
                    Accessible toys                                                     Safety and quality criteria
                                                                               In our global development of products, we ensure our products are safe and
In 1980, TOMY began to develop “accessible toys” which are products
                                                                               high quality not only by complying with the laws and ordinances, and
that differently-abled people can use without difficulties. TOMY is an
                                                                               regulatory standards of each country and region, but also by establishing
advocate of this initiative and expands the activity not only across the
                                                                               original TOMY Group safety and quality criteria. By ensuring our products
Japanese toy industry but also to other industry and regions.
                                                                               adhere to these stricter standards, we aim to prevent accidents from ever
                                                                               occurring.
                                                     Raised dot                The TOMY Group hold annual meetings attended
                                                                               by all employees for discussions, led by the units
                                                                               in charge of product safety and quality, which are
Logo for Accessible Design Toys                                                geared toward promoting awareness and
                                                                               understanding of the importance of safety and
                                                                               quality control.
                           Eco-toys                                                                      Testing being conducted on in-house equipment

In addition to manufacturing environmentally friendly toys, TOMY intends                    Regional contribution
to help inspire a sense of responsibility for the environment to children,
                                                                               TOMY concluded an agreement on collaboration and cooperation with
who hold the keys to the future. As an industry leader in this field, TOMY     Katsushika City, a city steeped in toy history, in July 2017. As a
launched its Eco-Toy program in 2011 and started reducing toys made            company with its headquarters in Katsushika City, TOMY is participating
with safe, recycled plastic in July 2012. Consequently, the Plarail “Eco       and cooperating in events and other initiatives organized by Katsushika
                                                                               City aimed at social contribution and regional revitalization.
Straight-Line Rail” and “Eco Curved Rail” products were the first toys to
be certified to carry the Eco Mark by the Japan Environment Association.

                                             These “green rails” are                                                 A Halloween Parade
                                             composed of 50% or more                                                 organized in cooperation with
                                             safe recycled materials.                                                Katsushika City, a local
                                                                                                                     shopping arcade, the police,
                                                                                                                     and the fire department
                                                                           8                                                                             8
This report contains forward-looking statements, targets, plans and strategies for the future.
       However, these are based on current information and will not guarantee nor warrant any
       financial estimates or any figures. Therefore, actual results could differ from this report.
       This is translation on original text in Japanese.

© TOMY JR東 日 本 商 品 化 許 諾 済 JR西 日 本 商 品 化 許 諾 済 TM & © Wizards of the Coast/Shogakukan/Mitsui-kids ©2017 Pokémon. ©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc.
Developed by T-ARTS and MARV ©Hiro Morita, BBBProject, TV TOKYO © TOMY © 2016 Pokémon
                                                                               9
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