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

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Page 1: TOMY Company, Ltd. Company Information - · PDF fileTOMY Company, Ltd. Company Information TSE ... manufacturing products such as toys, ... and to partially withdraw business in China

TOMY Company, Ltd. Company Information

TSE Securities Code: 7867

Page 2: TOMY Company, Ltd. Company Information - · PDF fileTOMY Company, Ltd. Company Information TSE ... manufacturing products such as toys, ... and to partially withdraw business in China

Page 1

Overview of TOMY

Japan T-ARTS TOMY TEC TOMY Marketing Company, Ltd , etc Number of

consolidated subsidiaries:

35

North America Europe and Oceania

TOMY Holdings TOMY International, etc

Asia TOMY Hong Kong TOMY Thailand , etc

Company Overview Group Companies

Distribution of Ownership among Shareholders

• TOMY Company, Ltd. (TOMY) was founded in 1924. We have been in business for 90 years.

• Founding Philosophy:

Let’s excite the world’s markets with our outstanding products.

Our sincerity and diligence will contribute to society and lead to our own success and happiness.

• Business Domains:

Toy business : Planning, developing and manufacturing products such as toys, and baby products.

Toy-Periphery business: Manufacturing and selling of capsule toys, candy toys and railway models.

• We are listed on the first section of the Tokyo Stock Exchange and have a market cap of ¥153 billion as of Nov 30, 2017

• Number of Employees 1,951 (consolidated, Mar 2017)

Ownership Ratio

36%

24.9%

10.2%

25.5%

Individual InvestorsFinancial InstitutionsOther CorporationsForeign Corporations and Investors

As of Mar 31, 2017

As of Mar 31, 2017

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Overview of TOMY TOPIC2 TOPIC3 TOPIC1 TOPIC4

TOPIC1 • TAKARA was merged into TOMY, and this absorption-type merger resulted in a substantial increase in net sales despite the recording of a large extraordinary loss.

TOPIC2 • Operating income was boosted, not only by a reduction in products with low profitability, but 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.

(JPY in billion)

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.

83

185 181192

180 178159

187178

154 149163 167

4.76.0

5.0

10.4 10.3 10.1

2.5 3.3 2.6

7.76.0

3.8

7.99.3 8.9

14.5 14.6

16.8

10.011.5

16.2

2.44.4

(0.4)

11.611.1

-20

50

120

190

FY2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016-2

5

12

19

Net Sales (left) Operating Income (right) EBITDA(right)

TOPIC5

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Page 3

Overview of TOMY

Well balanced sales portfolio

13%

31%

8%21%

11%

3%

13%

Net Sales

¥167.6billion [FY2016]

Adult

Boys

Girls

Pre-school

Baby

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• Launched in 1970

• Tomica is Japan‘s first palm-sized diecast toy miniature car based on Japanese vehicles

• More than 930 kinds of vehicles launched, sold over 600 million pieces.

Tomica • Plarail is a toy train and plastic truck

system based on the actual trains • Long-selling product over 50 years

since its launch • More than 1,370 kinds of trains

launched, sold 160 million pieces.

Duel Masters

• Trading card games highly popular for more than ten years

Licca Doll • Licca is a fashion doll series,

celebrating its 50th anniversary in 2017 (Total sales volume is over 60 million)

• Using SNS to promote the brand

Plarail

• No.1 share in Japan

• Wide range of products from rail cars to dioramas

In addition to our line-up of many long-standing toy products with stable sales, we continue to create new hit products. (see TOMY Annual Report 2014 from page47 to page54)

Core Toy Brands in Japan

Amusement Machines • Arcade games for children

• Main games are PriPara, Pokémon Ga-Olé

Railroad models (N gauge)

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• More than 500 million products sold

• Launched over 130 countries around the world

• Global agriculture vehicle toys

• Wide range of products line from preschool to high-end replicas

• TOMY is the global toy licensee

• TV broadcast over 90 countries

Global toys born in Japan

TOMY International

• The third generation Beyblade launched in 2015

• 350 million units sold over 80 countries

We will further expand sales of toys of Japanese origin, TOMY International toys and baby merchandise

• Wide range of products including baby bottles, toddler cups and plates, baby carriages, etc.

• Age-appropriate baby and infant educational toys

• Developed with the advice of the infant specialist

Overseas Core Toy Brands

5

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Page 6 DVD

Toy-Periphery Products and Strategy Leveraging popular brand content to maximize revenue opportunities

Tomica Shop

Miscellaneous daily goods

Books

Amusement Machines

Capsule Toys

Candy-Toy

Apparel

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Page 7

Midterm Corporate Strategy

Three key Revolutions to Achieve the 4th Generation

Time Axis of Three Revolutions

Celebrating our 90th Anniversary, we are ushering in a new era called “the Fourth Generation” and have launched an extensive corporate management restructuring program.

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Kantaro Tomiyama Representative Director & Chairman

• In June 2015, appointed Representative Director & Chairman of TOMY

• 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

• Grandson of TOMY’s founder, Eichiro Tomiyama, and son of former President, Masanari Tomiyama

• Together with our two 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.

Experienced Management, Strong Board

• Appointed as Representative Director & President of TOMY Company, Ltd. in January 2018

• 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

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Board Members 5 directors

2 outside directors

40%

3inside directors

60%

Kazuhiro Kojima Representative Director, President & COO

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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

Eco-toys

Logo for Accessible Design Toys

CSR Activities

Raised dot

These “green rails” are composed of 50% or more safe recycled materials.

Safety and quality criteria

In our global development of products, we ensure our products are safe and high quality not only by complying with the laws and ordinances, and regulatory standards of each country and region, but also by establishing original TOMY Group safety and quality criteria. By ensuring our products adhere to these stricter standards, we aim to prevent accidents from ever occurring. 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 geared toward promoting awareness and understanding of the importance of safety and quality control.

Testing being conducted on in-house equipment

In 1980, TOMY began to develop “accessible toys” which are products that differently-abled people can use without difficulties. TOMY is an advocate of this initiative and expands the activity not only across the Japanese toy industry but also to other industry and regions.

In addition to manufacturing environmentally friendly toys, TOMY intends to help inspire a sense of responsibility for the environment to children, who hold the keys to the future. As an industry leader in this field, TOMY launched its Eco-Toy program in 2011 and started reducing toys made with safe, recycled plastic in July 2012. Consequently, the Plarail “Eco 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.

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Regional contribution TOMY concluded an agreement on collaboration and cooperation with Katsushika City, a city steeped in toy history, in July 2017. As a company with its headquarters in Katsushika City, TOMY is participating and cooperating in events and other initiatives organized by Katsushika City aimed at social contribution and regional revitalization.

Organization of a special exhibit at the Katsushika City Museum

A Halloween Parade organized in cooperation with Katsushika City, a local shopping arcade, the police, and the fire department

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Page 10

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 © T-ARTS / syn Sophia / テレビ東京 / PP3製作委員会 ©2017 Pokémon. ©1995-2017 Nintendo/Creatures lnc. /GAME FREAK inc. Developed by T-ARTS and MARV ©Hiro Morita, BBBProject, TV TOKYO © TOMY © 2016 Pokémon. © 1995–2016 Nintendo/Creatures Inc./GAME FREAK inc. TM, ®, and character names are trademarks of Nintendo. Manufactured by TOMY. © TOMY / syn Sophia / テレビ東京 / PRA製作委員会