TOMY Company, Ltd.

Company Information

TSE Securities Code: 7867

Page 1

39.56%

21.86%

10.15%

27.33%

Individual Investors

Financial Institutions

Other Corporations

Foreign Corporations and Investors

Overview of TOMY

Japan T-ARTS

TOMY TEC

TOMY Marketing

Company, Ltd , etc Number of

consolidated

subsidiaries:

33

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. Our company reached its 95th anniversary.

• 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 ¥109 billion as of Mar 31, 2019

• Number of Employees 2,665 （consolidated, Mar 2019）

１

Ownership Ratio

As of Mar 31, 2019

As of Mar 31, 2019

2

Overview of TOMY

• 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.

• 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.

• Acquisition of U.S. toy manufacturer RC2 boosted net sales.

• 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)

• 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

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

TOPIC 2 TOPIC 1

TOPIC 4

TOPIC 5

TOPIC 3

TOPIC 6

TOPIC 7

TOPIC 1

TOPIC 2

TOPIC 3

TOPIC 4

TOPIC 5

TOPIC 6

TOPIC 7

• We set out three revolutions in the policy of the previous Medium-Term Management Plan: “Product revolution,” “Structure

revolution of business” and “Revolution of mind”, aiming to increase profit by growing sales.

• We announced the new Medium-Term Management Plan toward the target to “Take on the Challenge toward New Growth,”

focusing on promoting six business strategies, and achieved new record highs.

3

• 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-sellers celebrating their 60th anniversary in 2019

• 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.

Core Toy Brands in Japan

Amusement Machines

• Arcade games for children

• Develop products such as Pokémon Ga-Olé

Railroad models (N gauge)

3

4

• 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

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

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Page 5 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 6

Midterm Corporate Strategy

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Medium-Term Management Plan（FY2018-2020）

Take on the Challenge toward New growth

Medium-term business strategy

Midium-term cost reduction and investment expansion messures

Midium-term financial strategy

Sales ￥190 billion

Operating income

14 billion

EBITDA 23 billion

Capital Adequacy rairo 50 ％

FY2020 Plan

Sales ￥176 billion

Operating income

￥14 billion

EBITDA ￥22 billion

Capital Adequacy rairo 46.5 ％

FY2018 Actual

Announced on May16,2018

Upward revision

FY2020 Mangement Targets

Sales ￥190 billion

Operating income

16 billion

EBITDA 25 billion

Capital Adequacy rairo 55 ％

Announced on May15,2019

Up until now, the Company has grown by focusing on “the changing times” and “constant innovation.”

The new Medium-Term Management Plan started from FY2018, and the Company has been promoting management reform.

In addition to satisfactory progress being made in Japan and in the Asia business in FY2020, the first fiscal year since the

Medium-Term Management Plan started, we also anticipate the full-scale expansion of the highly profitable digital business

during FY2019. Accordingly, we have upwardly revised the operating profit target to ¥16.0 billion.

7

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

• Under Kazuhiro Kojima, Representative Director, President & COO, a new management system began in January 2018.

• A management system with two Representative Directors was introduced and we are promoting prompt management.

• In FY2018 a female Director was elected and in FY2019 the Board of Directors is composed of a majority of Outside Directors. As such, we are striving to strengthen the Board of Directors.

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

7

Board Members 7 directors

4 outside directors

57％

3inside directors

43％

Kazuhiro Kojima Representative Director, President & COO

8

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.

8

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.

A Halloween Parade

organized in cooperation with

Katsushika City, a local

shopping arcade, the police,

and the fire department

9

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.

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