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