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