Investors

In the first quarter of this fiscal year, the global economy as a whole has been resilient. However, the impact related to the U.S. tariff policy is expected to be broad-based, including the realignment of the supply chain and changes in the trade structure, and companies and governments are facing the need to respond flexibly and strategically.
In Japan, the number of international visitors reached 36,860,000 in 2024, marking a record high. Furthermore, the Expo 2025 Osaka, Kansai, Japan, which opened in April of this year, is expected to increase the number of international visitors to Japan in the future. This strong growth in inbound demand is further promoting the development of the tourism and entertainment industry. In the content business, global expansion is accelerating due to the spread of video distribution, and the presence of Japanese IP is rapidly increasing, particularly in international markets.
In this environment, we are making steady progress toward achieving sustainable growth and long-term corporate value creation based on our corporate philosophy of “The Greatest Leisure for All People.” Starting this fiscal year, we have been building a structure that enables us to develop businesses in all areas of content by organically linking the strengths of each group company, including the Ultraman IP’s long experience in the content business and global expansion, and our expertise in acquiring leading IP and merchandise planning capabilities in the amusement equipment business. By taking full advantage of the resources of group companies and further strengthening collaboration, we will focus on developing new businesses and monetizing existing IP with the aim of achieving sustainable growth as a global content company.
Tsuburaya Productions Co., Ltd. (hereinafter. “TPD”), which plays a central role in the content and digital business, will sequentially announce various initiatives from the fiscal year under review in preparation for the 60th anniversary of the launch of Ultraman series broadcasting, which is scheduled for the next fiscal year. Accordingly, in addition to developing licensing merchandise and card-game MD (merchandising) in collaboration with our partner companies, we will actively collaborate with new companies.
In the amusement equipment business, we are steadily advancing initiatives in the first year to achieve the three-year business plan announced in May of this year. In the first quarter of the fiscal year under review, in addition to strong sales of several titles equipped with leading IP, increased production of the titles sold in the previous fiscal year contributed significantly to results. In particular, the newly acquired pachinko/pachislot (hereinafter, “PS”) Tokyo Ghoul series has continued to operate at the top level since its introduction and has been highly regarded by fans and pachinko halls. In the future, we will continue to contribute to the development of the industry by promoting the strengthening of a stable system of developing and selling PS machines that meets the needs of the market, centered on FIELDS CORPORATION (hereinafter, “FIELDS”). In addition, ACE DENKEN Co., Ltd. is proceeding with increasing management efficiency by integrating its sales bases with FIELDS, and the development of new customers is proceeding smoothly. We also expect to contribute to cost optimization and improved profit margins by gradually integrating 12 distribution bases nationwide.

Consequently, the Group's consolidated results for the first quarter of this fiscal year were as follows: net sales ¥55,555 million (up 112.2% YoY), operating profit ¥7,809 million (up 210.0% YoY), ordinary profit ¥8,001 million (up 140.4% YoY), and profit attributable to owners of parent ¥5,575 million (up 228.5% YoY).

The overview of each business segment is as follows.

Content and digital segment
The status of TPD in the first quarter is as follows.
Net sales was ¥2,305 million, of which total in the major categories (licensing /MD/ imaging and event revenues) was ¥2,281 million (down 7.3% YoY).
In the first quarter of this fiscal year, unauthorized products frequently appeared against a backdrop of the strong popularity of the Ultraman IP in China. In response to this, we are working to strengthen our crackdown system in cooperation with local partners and are continuing to implement initiatives. In addition, taking advantage of the business alliance with Alibaba Japan that began in the first quarter of this fiscal year, the company is working to create new revenue opportunities. These include global EC utilizing the Alibaba Group’s platform and inbound businesses. Through these efforts, we aim to further enhance our brand value.

The breakdown by category is as follows.

<Licensing revenue: ¥1,395 million ((20.0)% YoY)>

<Overseas>
Due to the aforementioned impact, licensing revenue from China decreased YoY. Meanwhile, licensing revenues from North America, Asia etc. doubled YoY due to successful development of a global distribution network.
<Domestic>
Licensing revenues decreased during the year due to a reactionary decline in GRIDMAN-related revenues recorded in the prior year period.

<MD (product sales) revenue: ¥351 million (up 250.3% YoY)>

In both domestic and overseas markets, MD revenues increased due to the expansion of our in-house planning merchandise.

<Imaging and event revenue: ¥534 million (down 13.2% YoY)>

Imaging and event revenues decreased due to a reactionary decline in revenues related to Ultraman: Rising and GRIDMAN recorded in the same period of the previous fiscal year.

Digital Frontier Inc. saw steady progress in VFX production of Netflix films and the development of full 3DCG production for large anime movies and game software, including receiving orders for the production of CG video for the newest production by director Mamoru Hosoda's latest film, Scarlet.

As a consequence, net sales for the content and digital business segment for the first quarter of the fiscal year under review was ¥3,541 million (down 1.6% YoY) and operating profit was ¥443 million (down 57.7% YoY).

Amusement equipment segment
FIELDS responded to the demand for increased production of titles sold in the previous fiscal year, in addition to sales of several titles equipped with leading IP, resulting in sales of approximately 95,000 units in the first quarter of this fiscal year, accounting for approximately 26% of total market sales (Source: TSUBURAYA FIELDS HOLDINGS). We have captured the top share in the same period. Looking ahead to the second quarter, we have already sold out 1 pachinko and 2 pachislot titles as main titles.

As a consequence, the amusement equipment business segment's net sales for the first quarter under review was ¥51,703 million (up 131.9% YoY) and operating profit was ¥8,177 million (up 297.4% YoY).

[PS machine unit sales and major sales titles]

[Major sales titles in the first quarter]

[Major sales titles since the second quarter]

Other business
Other business posted net sales of ¥447 million and operating loss of ¥8 million for the first quarter of this current fiscal year.

(2) Earnings forecasts

As described above, the business performance of each segment has been steady, and the consolidated earnings forecast for the year ending March 31, 2026 is unchanged from the content announced on May 13.

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

(3) Overview of financial position