Investors

Japan’s economy during the interim consolidated accounting period maintained a moderate recovery trend, supported by widespread wage increases resulting from the Shunto (spring wage offensive), which is an annual wage negotiation campaign conducted in Japan, typically starting in spring, and government initiatives to counter rising prices. However, downside risks to the economy remain, such as U.S. trade policies and the suppression of personal consumption due to inflation, leaving the outlook uncertain.
In October 2025, the newly inaugurated Takaichi administration announced a policy of “responsible proactive fiscal management,” focusing on measures to counter rising prices and promote growth-oriented investment. Household support initiatives include the potential abolition of the provisional gasoline tax rate, the introduction of refundable tax credits, and a review of the basic income tax deduction. In addition, strategic investments are being made in key sectors such as AI, semiconductors, and defense, alongside efforts to restart nuclear power plants, aiming to enhance economic security and growth potential.
These policies are expected to help underpin consumption and improve corporate earnings and are seen as positive steps toward sustained economic growth. In financial markets, the change of government has been accompanied by rising stock prices and a trend towards a weaker yen, which are having favorable effects on corporate activity and stock prices. Going forward, while closely monitoring the impact of government policies and market developments, efforts aimed at economic stability and growth are expected to be progressively put into action.
In this interim period, guided by the corporate philosophy of “The Greatest Leisure for All People” , our Group steadily advanced initiatives aimed at achieving sustainable growth and creating long-term corporate value.
Regarding the amusement equipment business, sales of pachinko/pachislot (PS) machines equipped with major IPs progressed smoothly, and increased production of models sold in the previous fiscal period contributed significantly to results. Strengthening the product development and sales structure centered on FIELDS CORPORATION (hereinafter, “FIELDS”) has steadily increased the number of products highly rated by fans and parlors. In addition, at ACE DENKEN Co., Ltd., progress has been made in improving operational efficiency through the integration of sales offices with FIELDS, as well as in developing new customer relationships. These efforts are expected to further strengthen the business foundation.
In the content and digital business, Tsuburaya Productions Co., Ltd. temporarily recorded declines in revenue and profit, mainly due to reduced licensing income for its key products—block toys and trading card–related items in the Chinese market. Meanwhile, other business categories have remained generally firm, contributing to stable profit generation.
Currently, we are rolling out the “Ultraman Series Broadcast 60th Anniversary” commemorative project over a two-and-a-half-year period through December 2027, and are proactively promoting various initiatives. In this project, in addition to MD (merchandise) development such as licensed products and card games in collaboration with partner companies, large-scale collaborations with new companies are also progressing, and we aim to further enhance the value of the Ultraman IP both in Japan and overseas.

As a result, the Group’s consolidated results for the interim consolidated accounting period were as follows: net sales ¥95,953 million (up 109.7% YoY), operating profit ¥13,595 million (up 233.9% YoY), ordinary profit ¥13,904 million (up 160.8% YoY), and profit attributable to owners of parent ¥9,552 million (up 238.3% YoY).

The overview of each business segment is as follows.

Content and Digital Business Segment
The status of TDP during the interim consolidated accounting period is as follows.
Net sales was ¥5,100 million, of which the total of the major categories (license/MD (product sales)/imaging and event revenues) was ¥4,790 million (down 13.6% YoY).
The Ultraman IP continues to enjoy strong popularity both in Japan and overseas. However, during the interim period, revenue and profit temporarily declined due to a decrease in licensing income from key products—such as block toys and trading card-related items in the Chinese market. The main factors include the normalization of sales for products that had previously contributed significantly due to a temporary hit in the Chinese market, as well as a review of product offerings by local partners in response to IP diversification. Going forward, we aim to strengthen our earnings base by developing products aligned with market needs and building new partnerships.

The breakdown by category is as follows.

<License Revenue: ¥2,302 million (down 38.7% YoY)>

<Overseas>
In the Chinese market, licensing revenue declined year-on-year due to the aforementioned impact. Meanwhile, as our global expansion accelerates, licensing agreements in regions such as North America and Asia have steadily increased, resulting in year-on-year growth.

<Domestic>
In Japan, licensing revenue declined during the period, primarily due to a reactionary decrease following the decrease in GRIDMAN-related revenue in the same period of the previous year.

<MD (Product Sales) Revenue: ¥761 million (up 248.9% YoY)>

The expansion of the lineup of our in-house developed product, the Ultraman Card Game, led to an increase in MD (Product Sales) revenue both in Japan and overseas. Starting in July 2025, we launched sales of products for the Chinese market through the cross-border e-commerce platform “TMALL GLOBAL” and have since been steadily expanding our product lineup.

<Imaging and Event Revenue: ¥1,726 million (up 10.0% YoY)>

Revenue from imaging and event operations increased year-on-year during the interim period, primarily due to increase in audience attendance at the annual “Ultra Heroes EXPO 2025 Summer Festival” and the biennial “TSUBURAYA CONVENTION 2025”, held during the summer and autumn seasons respectively.

As a result, net sales for the content and digital business segment for interim consolidated accounting period was ¥7,538 million (down 5.7% YoY) and operating profit was ¥749 million (down 64.6% YoY).

Amusement Equipment Business Segment
During the interim period, sales of pachinko/pachislot (PS) multiple models featuring major IPs performed strongly. In addition, responding to increased production demand for models released in the previous fiscal year, total unit sales reached approximately 159,000 units (up 228.6% YoY). As a result, our market share of total units sold reached approximately 20.7% (according to our estimates).
Sales heading into the third quarter are also progressing steadily. The latest title in the Evangelion series, NEON GENESIS EVANGELION -Memories of the beginning-, scheduled for release in December, is attracting significant market attention. To support long-term operation, we are conducting active promotions across various media channels, including television commercials, web content, and social media.

As a result, the amusement equipment business segment’s net sales for the interim consolidated accounting period was ¥87,825 million (up 136.1% YoY) and operating profit was ¥14,673 million (up 369.9% YoY).

Other Businesses
Other businesses posted net sales of ¥901 million and operating profit of ¥8 million for the interim consolidated accounting period.

(2) Explanation Regarding Forward-Looking Statements Including Consolidated Earnings Forecasts

We have revised the full-year earnings forecast for the fiscal year ending March 2026 from the figures announced on 13 May 2025. For details regarding the revision, please refer to the notice titled “Notice of Revision of Earnings Forecast for the Fiscal Year Ending March 2026” released today.

Initiatives for Group IP Business Strategy
In recent years, the Japanese-originated IP has gained high recognition globally, with their international expansion progressing steadily. Japan's unique creative content—particularly in anime, special effects, and gaming—has been well received in overseas markets and is being deployed in various forms across regions.
Since its listing in 2003, our group has promoted a “IP-centric cyclical business model” and has accumulated extensive know-how in the IP business over the past 20 years.
In the content and digital business, we have a long-standing track record of content development centered on Ultraman IP, along with experience in global expansion. In the amusement equipment business, we have built strong capabilities including sustained and positive partnerships with major IP holders, expertise in acquiring high-value IPs, product planning, and sales capabilities.
Currently, we are exploring content development centered on MD (Merchandizing) both in Japan and overseas to maximize the value of our key IPs. In parallel, we are working to build a structure that enables business development across diverse content domains by leveraging the strengths of each business segment in a coordinated manner.
We are also reviewing multiple strategic initiatives, and plan to announce a concrete group IP business strategy in May 2026 after finalizing the details. We will continue to steadily prepare for further maximizing IP value and accelerating global expansion.

Shareholder Returns
We regard the improvement of corporate value as an important management issue and have adopted a basic policy of paying dividends in line with profits. We recognize that continuous investment in business growth is essential for our group, which is developing our global content business. We will return profits to shareholders while considering the balance with business investment, while realizing steady business growth and increased profits.
We are also carefully considering year-end dividends based on revisions to our earnings forecasts for the current fiscal year. We will respond appropriately to realize stable shareholder returns while comprehensively considering future performance trends.

(Note 1) Figures in this summary report are based on published figures for each company/organization or on our estimates.
(Note 2) The names of products in this summary report are trademarks or registered trademarks of their respective companies.

(3) Overview of Financial Position