TOEI COMPANY, LTD.

Business Details

The Visual Media Business consists of the Film Business (production and distribution of theatrical films, post-production), the Drama Business (production and distribution of TV movies, licensing of tokusatsu character merchandising rights), the Content Business (licensing of visual rights, sale of distribution/broadcast rights, overseas import/export), and Other (contract production at studios, etc.). Thirty companies participate, including Toei Animation Co., Ltd., Toei Video Co., Ltd., and Toei Lab Tech Co., Ltd., aiming to maximize earnings through domestic and overseas IP multi-use development. This is the core segment, accounting for approximately 69% of consolidated net sales.

Recent Overview

The Visual Media Business saw a decline in both revenue and profit. Its share within the consolidated results has declined due to the rapid growth of the Exhibition-Related Business and Architectural Interior Business.

In the Visual Media Business for FY2026 (ending March 2026), net sales to external customers were ¥127,941 million (down 4.5% year on year) and operating profit was ¥32,448 million (down 3.6% year on year), representing declines in both revenue and profit. Although several of the 41 distributed films performed well, results overall were weaker than the prior year. On the other hand, in the Content Business, domestic distribution rights and overseas sales remained solid, with expansion of simulcast distribution of the Kamen Rider series in Asia, North and South America, and Europe, and sale of remake rights to China contributing to results. Tokusatsu character merchandising rights licensing remained solid, supported by anniversary campaigns for older titles and licensing to game apps, even amid diversifying consumer preferences.

Key Products

Growth Drivers

• Expansion of domestic and overseas multi-use development leveraging powerful IPs such as "One Piece," "Kamen Rider," "Super Sentai," and "Precure"
• Continued strong sales of distribution rights to streaming platforms (both domestic and overseas distributors)
• Expansion of overseas screening rights, distribution rights, and merchandising rights sales, including the launch of simulcast distribution in Asia, North and South America, and Europe
• Extension of IP lifecycles through licensing of anniversary campaigns, game apps, and premium figures based on older IP titles
• Strengthening of planning and production capabilities through the content investment plan under the medium- to long-term VISION "TOEI NEW WAVE 2033"
• Development of new overseas revenue sources, including sale of remake rights to China

Risks

• High unpredictability of theatrical film hits, creating the risk that box-office performance spreads to the Drama Business and Content Business overall
• Structural decline in physical media revenue due to the overall shrinking package (DVD/Blu-ray) industry
• Impact on tokusatsu character merchandising rights sales activities from diversifying consumer preferences regarding toys and other goods
• Increasing geopolitical and foreign exchange risk accompanying accelerated overseas expansion
• Risk of cost ratio deterioration due to rising content production costs and labor costs
• Risk that the group's overall earnings structure will change as the Exhibition-Related Business and Architectural Interior Business rapidly grow and reduce this segment's share within consolidated results

Business Details

This business is operated by the consolidated subsidiary T-Joy Co., Ltd. (made a wholly owned subsidiary via a simplified share exchange in July 2025, and renamed "Toei Joy Entertainment Co., Ltd." effective April 2026), which operates cinema complexes comprising 23 sites and 230 screens (including joint management and joint operation). The last directly managed theater, "Marunouchi TOEI" (2 screens), closed on July 27, 2025, and cinema complex operations now form the core of this business. The primary customers are general moviegoers, with box-office revenue from film screenings as the main revenue source.

Recent Overview

A series of major box-office hits combined with the full consolidation of T-Joy Co., Ltd. drove a large increase in revenue and profit, with net sales up 33.0% and operating profit up 207.0%

For the full year of FY2026 (ending March 2026), net sales were ¥25,226 million (up 33.0% year on year) and segment profit was ¥2,403 million (up 207.0% year on year), representing a substantial increase in both revenue and profit. Major hits such as "Detective Conan: One-Eyed Flashback," "Mission: Impossible - The Final Reckoning," "Demon Slayer: Kimetsu no Yaiba Infinity Castle - Chapter 1," and "Chainsaw Man - The Reze Arc" drove results. T-Joy Emiterrace Tokorozawa also continued to perform well. The expanded consolidated contribution from the July 2025 full consolidation of T-Joy Co., Ltd. as a wholly owned subsidiary also contributed to the increase in revenue.

Key Products

Growth Drivers

• Expanded consolidated contribution from the full consolidation of T-Joy Co., Ltd. as a wholly owned subsidiary in July 2025
• Increased attendance driven by major hits ("Detective Conan: One-Eyed Flashback," "Demon Slayer: Kimetsu no Yaiba Infinity Castle - Chapter 1," "Chainsaw Man - The Reze Arc," etc.)
• Sales contribution from the operation of the newly opened T-Joy Emiterrace Tokorozawa facility (opened September 2024)
• Recovery in personal consumption against the backdrop of expanding inbound demand

Risks

• Risk of earnings volatility due to hits or underperformance of theatrical films (box-office revenue is highly dependent on specific titles)
• Structural risk of declining moviegoer numbers due to the spread of OTT and streaming services
• Rising cinema complex operating costs due to increases in construction material costs and utility costs
• Risk of a rebound decline from the prior year's major hits (consolidated operating profit is expected to decline significantly in the forecast for FY2027 ending March 2027)
• Risk of business concentration following the shift to cinema complex-only operations after the closure of directly managed theaters

Business Details

This segment is centered on the planning and operation of Character Shows and Cultural Events / Special Exhibitions featuring characters from works produced by the Toei group, along with the production and sale of event-related goods and sale of character merchandise through the Kamen Rider Store and Toei Online Store. In addition, a consolidated subsidiary operates the entertainment facility "Toei Uzumasa Eigamura." In FY2026 (ending March 2026), various events and merchandise sales performed well, while Uzumasa Eigamura's attendance was affected by operational restrictions due to renovation work.

Recent Overview

Various events and merchandise sales performed well, resulting in an increase in both revenue and profit, while renovation work at Uzumasa Eigamura affected attendance

In FY2026 (ending March 2026), net sales were ¥13,006 million (up 16.1% year on year) and operating profit was ¥1,616 million (up 27.4% year on year), achieving an increase in both revenue and profit. Various events such as the Kamen Rider Gavv Final Stage, the All Super Sentai Exhibition, and the Brooklyn Museum Collection Special Exhibition: Ancient Egypt performed well, and sales through the Kamen Rider Store and Toei Online Store also remained solid. On the other hand, at Toei Uzumasa Eigamura, restrictions on operating areas and days due to renovation work affected attendance, causing net sales to struggle. Segment assets increased by ¥6,231 million year on year to ¥16,458 million, and the increase in tangible and intangible fixed assets also expanded significantly from the prior year to ¥6,741 million, likely mainly due to investment related to the Uzumasa Eigamura renovation.

Key Products

Growth Drivers

• Strong performance of final stages and live tours leveraging popular IPs such as Kamen Rider, Super Sentai, and Precure
• Expanded attendance through the planning and operation of cultural events (Ancient Egypt Exhibition, Sylvanian Families Exhibition, etc.)
• Solid performance of character merchandise sales through the Kamen Rider Store and Toei Online Store
• Expectations for recovery in attendance and earnings expansion following the completion of the Toei Uzumasa Eigamura renovation
• Diversification of event content accompanying the expansion of the Toei Group's IP portfolio

Risks

• Impact on operating areas and attendance from prolonged renovation work at Toei Uzumasa Eigamura
• Event revenue's dependence on the popularity of specific IPs and hit titles, making it susceptible to fluctuations in the Visual Media Business
• Uncertainty in merchandise sales due to diversifying and changing consumer preferences regarding toys and other character merchandise
• Increased event operating costs due to price increases (utility costs, materials costs, etc.)
• Risk of a shrinking domestic fan base due to the declining birthrate and population decline

Business Details

The Toei Group's Tourism & Real Estate Business consists of two pillars: the Real Estate Leasing Business, covering nationwide mixed-use commercial facilities and residential properties such as "Toei Plaza" (Shibuya, Fukuoka, Hiroshima, Sendai) and "Shinjuku Sanchome East Building," and the Hotel Business. This segment functions as a stable baseline revenue source that complements fluctuations in the Visual Media Business's earnings, and the company is pursuing rent optimization in line with market conditions, flexible pricing, and thorough cost reductions.

Recent Overview

Strong leasing performance and record profits at two hotel locations resulted in an increase in both revenue and profit

For FY2026 (ending March 2026), net sales were ¥6,920 million (up 1.2% year on year) and operating profit was ¥2,757 million (up 8.5% year on year), achieving an increase in both revenue and profit. Real estate leasing performed well, aided by rent optimization in line with market conditions. In the Hotel Business, occupancy rates improved due to the recovery of inbound demand, and Yuzawa Toei Hotel and Fukuoka Toei Hotel recorded both record-high revenue and profit. On the other hand, rising construction and labor costs affected the leasing, sales, and redevelopment businesses, and changes have also occurred in the supply-demand balance. Fixed asset investment declined significantly year on year to ¥1,950 million.

Key Products

Growth Drivers

• Improvement in hotel occupancy rates due to the continued recovery of inbound demand
• Improvement in real estate leasing earnings through rent optimization in line with market conditions
• Improved profitability through original merchandise sales, flexible pricing, and thorough cost reductions
• Maintaining and improving profit margins through price revisions and thorough cost management

Risks

• Risk that the continued decline in domestic group usage will restrain the recovery of hotel occupancy rates
• Risk that continued price increases such as utility costs will push up costs in both the hotel and real estate leasing businesses
• Risk that rising construction costs and labor costs will affect the leasing, sales, and redevelopment businesses, changing the supply-demand balance
• Risk that population decline in regional areas will worsen the supply-demand balance, affecting occupancy rates and rent levels for leased properties
• Risk of increased cost burden due to rising depreciation and amortization (from ¥875 million to ¥1,075 million)

Business Details

A consolidated subsidiary undertakes construction work and Interior Decoration Contracting. Its main clients are cinema complexes, commercial facilities, residential properties, health care facilities for the elderly, and support facilities for people with disabilities, for which it undertakes interior and construction work. It also receives orders for new construction and renovation of cinema complexes within the Toei Group, which are recorded as internal sales within the group. Although its sales scale is relatively small at approximately 6.6% of consolidated totals, in FY2026 (ending March 2026) the segment achieved a substantial increase in both revenue and profit due to increased orders for large-scale construction projects and appropriate maintenance of construction pricing.

Recent Overview

Increased large-scale construction orders and maintained pricing resulted in a substantial increase in revenue and profit, with net sales up 37.7% and operating profit up 179.9%

In FY2026 (ending March 2026), despite a challenging environment of persistently high construction material costs and rising labor costs, the number of large-scale construction orders increased, including for commercial facilities and cinema complexes, residential properties, facilities for people with disabilities, and health care facilities for the elderly. In addition, through efforts to maintain appropriate construction pricing and secure profits, net sales to external customers reached ¥12,238 million (up 37.7% year on year) and operating profit reached ¥1,390 million (up 179.9% year on year), achieving a substantial increase in both revenue and profit.

Key Products

Growth Drivers

• Increase in the number of large-scale construction orders, including commercial facilities and cinema complexes, residential properties, facilities for people with disabilities, and health care facilities for the elderly
• Improved profitability through maintaining appropriate construction pricing and securing profits
• Capturing new construction and renovation work for cinema complexes within the Toei Group (utilizing internal group sales)
• Retention of existing clients and expansion of new orders through active sales activities

Risks

• Cost pressure from persistently high construction material costs
• Risk of deteriorating profitability due to rising labor costs
• Risk of earnings volatility due to uneven order distribution and dependence on large-scale projects
• Risk of fluctuation in internal orders linked to trends in cinema complex investment within the Toei Group