Investors

During the first quarter cumulative period under review, the Japanese economy continued on a moderate recovery trend, centered on private consumption, against the backdrop of steady improvements in employment and income conditions as well as the effects of various policy initiatives. On the other hand, although careful attention was required regarding consumer selectivity driven by price trends, situation in the Middle East, and fluctuations in financial and capital markets, moves toward recovery aimed at normalizing economic activity made steady progress.
Under these circumstances, in the IP and content business market, distribution platforms have diversified alongside advances in digital technology, and content production and operations have become increasingly sophisticated through the utilization of generative AI and other technologies. Furthermore, while the activation of fan communities and the growing demand for experiential entertainment integrating into the real and digital worlds continue to expand, prompt responses to environmental changes are required, such as intensifying competition in development and acquisition in global markets and shortening product lifecycles driven by faster content consumption.
In this environment, under our corporate philosophy of The Greatest Leisure for All People, we worked on the steady execution of growth strategies and the further reinforcement of its business foundation in this first year of the “Group Medium-Term Management Plan FY2026-2028,” announced on May 12, 2026, with the aim of reliably translating market expansion opportunities into business growth. As a result of driving the speedy execution of initiatives across each business, operating performance progressed ahead of the initial plan, successfully establishing a solid foothold toward achieving the Group Medium-Term Management Plan.

Content and digital business segmentt
At Tsuburaya Productions Co., Ltd. (TPD), which plays a central role in this segment, performance remained solid driven by overseas sales centered on China and domestic merchandising licensing. As a result, net sales came to ¥2,129 million (up 5.0% YoY) and operating profit was ¥779 million (up 227.7% YoY). As a result of the above, the results for this business segment in the first quarter cumulative period under review were as follows: net sales ¥3,366 million (down 4.9% YoY), and operating profit ¥920 million (up 107.5% YoY).

Amusement business segment *
At FIELDS CORPORATION, the supply structure for competitive products from partner manufacturers (Layer 2) and in-house developed products (Layer 3) functioned smoothly, built upon the industry’s sole sales and distribution platform (Layer 1) backed by strong relationships of trust with major pachinko parlors nationwide. Reflecting these business conditions and the progress of various initiatives, the results for this business segment in the first quarter cumulative period under review were as follows: net sales ¥40,011 million (down 22.6% YoY), and operating profit was ¥6,962 million (down 14.9% YoY).
* Renamed from “Amusement Equipment Business” starting in the current fiscal year.

As a result of the above, consolidated net sales for the first quarter cumulative period under review came to ¥43,715 million (down 21.3% YoY), and consolidated operating profit was ¥6,881 million (down 11.9% YoY).

The overview of each business segment is as follows.

Content and digital business segment

(Unit: millions of yen)			Apr.-Jun. 2025 (previous Q1 cumulative)	Apr.-Jun. 2026 (current Q1 cumulative)	Change (%)
	TPD	Net sales	2,028	2,129	＋5.0
		Operating profit	237	778	＋227.7
	Others (Digital Frontier Inc., etc.)	Net sales	1,512	1,237	(18.2)
		Operating profit	205	141	(31.2)
Total		Net sales	3,541	3,366	(4.9)
		Operating profit	443	920	＋107.5

The regional breakdown of the result in TPD is as follows.

<Result by region>

(Unit: millions of yen)		Apr.-Jun. 2025 (previous Q1 cumulative)	Apr.-Jun. 2026 (current Q1 cumulative)	Change (%)
Japan	Net sales	812	906	＋11.6
	Operating profit	(181)	153	-
China	Net sales	999	1,037	＋3.8
	Operating profit	789	884	＋12.0
Asia	Net sales	102	56	(44.4)
	Operating profit	(108)	(67)	-
Other *1	Net sales	37	82	＋117.1
	Operating profit	(76)	(29)	-
Global marketing *2	Net sales	75	45	(39.8)
	Operating profit	(186)	(161)	-
Total	Net sales	2,028	2,129	＋5.0
	Operating profit	237	778	＋227.7

*1 Other: Europe and America, and other regions
*2 Global marketing: Video production costs and amortization of investments in production committees, etc.

Japan: Performance remained solid overall across the licensing and imaging and event businesses, resulting in year-on-year increases in both revenue and profit. As part of initiatives aimed at the proactive expansion of the in-house MD business set forth in the Group Medium-Term Management Plan, we promoted collaborations with prominent IP holders, which generated a response far exceeding our initial expectations.
China: In addition to the success of various sales initiatives implemented by the master licensee, both revenue and profit increased year-on-year, driven by the acquisition of new sublicensees and higher licensing revenues from major existing sublicensees.

Amusement business segment

In the first quarter cumulative period under review, driven by sales of multiple machine titles featuring major IP, as well as responding to demand for additional production of L Tokyo Ghoul, which continues to enjoy high market popularity in the market. As a result, unit sales reached approximately 67,000 units (down 29.1% YoY), and operating profit achieved a progress rate of approximately 35% against the full-year earnings plan for the current fiscal year. Furthermore, for machine titles scheduled for delivery in the second quarter, sales have already been completed with volumes exceeding initial plans.

[PS machine unit sales]

		Apr.-Jun. 2025 (previous Q1 cumulative)	Apr.-Jun. 2026 (current Q1 cumulative)	Change (%)
	Pachinko	39,699 units	42,522 units	＋7.1％
	Pachislot	55,541 units	25,004 units	(55.0)％
Total		95,240 units	67,526 units	(29.1)％

[Major sales titles in the first quarter]

Classification	Major sales titles	Unit sales
Pachinko	P Ultraman Mebius Dekaheso319	~42,000 units
	e Resident Evil6
	e Tokyo Ghoul Chōdeka Chō Ichigeki ver.
	e Tokyo Ghoul(Continued sales from the previous fiscal year)
	NEON GENESIS EVANGELION -Memories of the beginning- (Continued sales from the previous fiscal year)
Pachislot	Ｌ Pachislot MOBILE SUIT GUNDAM UNICORN Awakening DRIVE	~25,000 units
	L Tokyo Ghoul (Continued sales from the previous fiscal year)
Total		~67,000 units

Other business

Other business posted net sales of ¥440 million and operating loss of ¥10 million for the first quarter of this current fiscal year.

(2) Earnings forecasts

Content and digital business segment

In this segment, the results of structural reforms promoted since the end of the previous fiscal year are steadily materializing across each business area. In Japan, both the MD business and the licensing business progressed strongly, while advertising revenues also progressed ahead of initial expectations. Furthermore, performance in the Chinese market is on a recovery trend.
Going forward, we will continue to aim for sustainable earnings growth by reliably executing each key initiative set forth in the Group Medium-Term Management Plan.

Amusement business segment

In this segment, in addition to products scheduled for delivery in the cumulative second quarter period already being fully sold out, order status for the main titles scheduled for delivery in the third quarter has progressed extremely strongly. This is not merely a temporary factor driven by strong sales of a single product but rather represents a structural improvement in profitability resulting from the combined manifestation of the Group’s established strengths: a “robust sales network and strong relationships of trust with pachinko parlors,” “superior product procurement and proposal capabilities,” and “in-house development capabilities.”

As a result of the above, regarding our full-year earnings forecasts for the current fiscal year, as recent performance across each business segment has progressed steadily and is expected to exceed initial forecasts, we have decided to review the business plan announced in May 2026.

Full-Year Consolidated Earnings Forecasts and Numerical Targets for the "Group Medium-Term Management Plan FY2026-2028" Revision of Full-Year Consolidated Earnings Forecasts

	Net sales (Million yen)	Operating profit (Million yen)	Ordinary profit (Million yen)	Profit attributable to owners of parent (Million yen)	Basic earnings per share (Yen)
Previous forecast (A) (Announced on May 12, 2026)	187,000	19,000	19,150	13,500	216.86
Revised forecast (B)	205,300	22,500	22,650	15,000	240.95
Change (B-A)	＋18,300	＋3,500	＋3,500	＋1,500	+24.09
Percentage change (%)	＋9.8％	＋18.4％	＋18.3％	＋11.1％	+11.1%
(Reference) Results for the previous fiscal year (Year ended March 31, 2026)	174,142	17,455	17,751	13,050	209.70

In addition, in connection with the revision of the consolidated earnings forecast for the fiscal year ending March 31, 2027, as a result of carefully examining the current business environment, the progress in each business segment, and future business plans, we have decided to revise upwardly the “Group Medium-Term Management Plan FY2026-2028.”

Revision of the “Group Medium-Term Management Plan FY2026-2028”

		FY 2025 (Result)	Group Medium-Term Management Plan FY2026-2028
			FY 2026		FY 2027		FY 2028
			Initial plan	Revised plan	Initial plan	Revised plan	Initial plan	Revised plan
Net sales		174,142	187,000	205,300	193,000	215,300	202,000	230,300
	Content and digital business	13,874	15,300	19,000	20,500	24,000	24,000	29,000
	Amusement business	159,069	170,000	185,000	171,000	190,000	176,000	200,000
	Other business segment &Adjusted amount	1,197	1,500	1,300	1,500	1,300	1,500	1,300
Operating profit		17,455	19,000	22,500	21,700	25,500	25,000	28,500
	Content and digital business	934	3,000	4,500	3,700	5,500	5,000	6,500
	Amusement business	19,881	20,000	22,000	22,000	24,000	24,000	26,000
	Other business segment &Adjusted amount	(3,360)	(4,000)	(4,000)	(4,000)	(4,000)	(4,000)	(4,000)
Ordinary profit		17,751	19,150	22,650	21,850	25,650	25,150	28,650
Profit attributable to owners of parent		13,050	13,500	15,000	13,800	16,000	15,500	18,000

For details, please refer to the “Notice Regarding Revision of Earnings Forecasts and the Medium-Term Management Plan” disclosed today.

(3) Distribution of Special Dividend (Ultraman series 60th Anniversary Special Dividend)

The Company positions the enhancement of corporate value as an important management priority and has strived to reinforce its business foundation and achieve sustainable growth.
Under these circumstances, in light of the current outlook where business performance for the fiscal year under review is expected to significantly exceed the initial plan, as well as comprehensively considering its future financial position, we decided at the meeting of the Board of Directors held today to pay a special dividend (the Ultraman series 60th Anniversary Special Dividend) in order to further enhance shareholder returns.
This special dividend reflects our determination that returning profits directly to our shareholders, who support us daily, is the best course of action to express our sincere gratitude, making it the largest special dividend since our founding.
For the fiscal year ending March 31, 2027, the special dividend will be ¥70 per share and the year-end dividend will be ¥70 per share, revising the annual dividend forecast to ¥140 per share, representing an increase of ¥70 from the previously announced ¥70 per share. From the next fiscal year onward, this special dividend framework will be transitioned into an interim dividend to conduct continuous shareholder returns.
Going forward, while realizing steady business growth and profit expansion, we will strive to conduct stable and continuous shareholder returns while fully considering the balance with investments for future growth. For details, please refer to the “ Notice Regarding Distribution of Dividends of Surplus (Special Dividend)” disclosed today.
Going forward, we will continue to reliably execute each initiative set forth in the Group Medium-Term Management Plan to ensure sustainable growth, working as one Group to pursue the enhancement of corporate value. In addition, we will closely monitor future economic environments and market trends, and in the event of occurrences that significantly impact business performance, we will strive to make prompt and appropriate disclosures.

(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.

(4) Overview of Financial Position