November 1, 2016

Summary of Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2017 (FY2016) (Six Months Ended September 30, 2016) [Japanese GAAP] Company name: Company, Ltd. Listed Stock Exchange: TSE 1st Section Stock code: 8136 URL: http://www.sanrio.co.jp/english/corporate/ir/ Representative: Shintaro Tsuji, President and Chief Executive Officer Inquiries: Susumu Emori, Executive Managing Director TEL: +81-3-3779-8058 Scheduled date of filing of Quarterly Report: November 14, 2016 Starting date of dividend payment: November 21, 2016 Preparation of supplementary materials for quarterly financial results: Yes Holding of quarterly financial results meeting: Yes (for institutional investors and analysts) Note: The original disclosure in Japanese was released on November 1, 2016 at 16:00 (GMT +9). (All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of FY2016 (April 1, 2016 – September 30, 2016) (1) Consolidated results of operations (Percentages represent year-on-year changes) Net Profit Attributable Sales Operating Profit Ordinary Profit to Owners of Parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six months ended Sep. 30, 2016 31,451 (11.3) 3,887 (45.8) 3,729 (48.6) 3,804 (29.6) Six months ended Sep. 30, 2015 35,458 (0.2) 7,177 (15.3) 7,262 (19.5) 5,402 (10.6) Note: Comprehensive income (millions of yen) Six months ended Sep. 30, 2016: (2,675) (- %) Six months ended Sep. 30, 2015: 4,021 (down 22.0%) Fully-Diluted Net Net Profit per Share Profit per Share Yen Yen Six months ended Sep. 30, 2016 44.83 - Six months ended Sep. 30, 2015 62.46 -

(2) Consolidated financial position Total Assets Net Assets Equity Ratio Millions of yen Millions of yen % As of Sep. 30, 2016 100,133 48,664 48.3 As of Mar. 31, 2016 105,826 54,733 51.4 Reference: Shareholders’ equity (millions of yen) As of Sep. 30, 2016: 48,341 As of Mar. 31, 2016: 54,407

2. Dividends Dividend per Share

1Q-end 2Q-end 3Q-end Year-end Total Yen Yen Yen Yen Yen FY2015 - 40.00 - 40.00 80.00 FY2016 - 40.00 FY2016 (forecast) - 40.00 80.00 Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecasts for FY2016 (April 1, 2016 – March 31, 2017) (Percentages represent year-on-year changes) Net Profit Attributable Net Profit per Sales Operating Profit Ordinary Profit to Owners of Parent Share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 66,400 (8.4) 9,400 (25.8) 9,400 (28.7) 8,000 (16.7) 94.29 Note: Revisions to the most recently announced consolidated forecasts: Yes * Notes (1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None Newly added: - Excluded: -

(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None

(3) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: None 4) Restatements: None

(4) Number of outstanding shares (common stock) 1) Number of outstanding shares at the end of the period (including treasury stock) As of Sep. 30, 2016: 89,065,301 shares As of Mar. 31, 2016: 89,065,301 shares 2) Number of shares of treasury stock at the end of the period As of Sep. 30, 2016: 4,218,072 shares As of Mar. 31, 2016: 4,218,056 shares 3) Average number of shares outstanding during the period Six months ended Sep. 30, 2016: 84,847,235 shares Six months ended Sep. 30, 2015: 86,494,729 shares

Note 1: Information regarding the implementation of quarterly review procedures The current quarterly financial statements in this summary are exempted from quarterly review procedures based on the Financial Instruments and Exchange Act. At the time of disclosure of this report, the review procedures for these quarterly financial statements have not been completed.

Note 2: Cautionary statement with respect to forward-looking statements and other special items Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information currently available to the Company. These materials are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements” on page 6 of the attachments for forecast assumptions and notes of caution for usage.

Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance 2 (1) Explanation of Results of Operations 2 (2) Explanation of Financial Position 6 (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements 6

2. Matters Related to Summary Information (Notes) 7 (1) Changes in Consolidated Subsidiaries during the Period 7 (2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 7 (3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements 7 (4) Additional Information 8

3. Quarterly Consolidated Financial Statements 8 (1) Consolidated Balance Sheets 8 (2) Consolidated Income Statements and Consolidated Comprehensive Income Statements 10 (3) Notes to Quarterly Consolidated Financial Statements 12 Going Concern Assumption 12 Significant Changes in Shareholders’ Equity 12 Segment and Other Information 12

1 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations During the first half of the fiscal year under review (overseas: January 1 to June 30, 2016; within : April 1 to September 30, 2016), due partly to strong yen, overseas business underperformed the plan as buoyant expansion in the Chinese market proved unable to compensate for the continuing downturn in product licensing income in the United States and Europe. Domestic business also fell into a consumer recession due to unseasonal weather and a reversal of the previous year’s booming retail market for tourists visiting Japan under the influence of a hike in customs duties implemented by the Chinese government in April. Under these conditions, sales and profits both fell. In Japan, in addition to a strong performance from the theme park in Tama City, the new market ventures, especially Sanrio Danshi (boys) and Aggressive Retsuko, and the characters and Pom Pom Purin (which won two consecutive awards) demonstrated the popularity of the male-oriented market. Nevertheless, sales fell 11.3% year-on-year to 31.4 billion yen and operating profit 45.8% to 3.8 billion yen. Following a slight exchange rate loss in the same period of the previous fiscal year, ordinary profit in the current period was limited to 3.7 billion yen, a fall of 48.6% year-on-year, as a result of a foreign exchange loss of 0.3 billion yen due to a strong yen following the lower oil prices and the UK’s decision to leave the EU (the so-called “Brexit”). Meanwhile, net profit before income taxes fell 52.1% year-on-year to 3.7 billion yen. After factoring in a 0.6 billion yen gain on sales of investment securities amid a buoyant stock market the previous fiscal year, the gain was limited to 0.1 billion yen in the current first half. Following the decision to make corrections in prior periods, refund of income taxes amounted to 1.1 billion yen. Accordingly, net profit attributable to owners of parent fell 29.6% year-on-year to 3.8 billion yen.

Reportable Segment (100 millions of yen) Sales Segment profit (operating profit) Increase/ Increase/ First six months of FY2015 FY2016 Change % FY2015 FY2016 Change % decrease decrease Product sales/others 186 178 (8) (4.4) Japan Royalties 52 48 (3) (6.3) 47 27 (20) (43.2) Total 238 226 (11) (4.9) Product sales/others 0 0 (0) (83.6) Europe Royalties 32 16 (15) (47.9) 7 1 (6) (76.1) Total 32 16 (15) (48.4) Product sales/others 7 6 (0) (10.3) North Royalties 22 14 (8) (37.2) 2 (3) (5) - America Total 30 20 (9) (30.8) Product sales/others 0 0 (0) (28.3) Latin Royalties 6 4 (1) (27.9) 1 1 (0) (13.8) America Total 6 4 (1) (27.9) Product sales/others 8 7 (1) (15.2) Asia Royalties 37 37 (0) (0.7) 16 15 (0) (4.2) Total 46 45 (1) (3.5) Adjustment - - - - (4) (4) (0) - Product sales/others 202 192 (10) (5.3) Consolidated Royalties 151 122 (29) (19.4) 71 38 (32) (45.8) Total 354 314 (40) (11.3) Note: Regional subsidiaries overseas pay the amount of royalties commensurate as the cost of sales while the Japanese parent company (the copyright holder) calculates this income as sales. Because consolidated transactions are eliminated, however, these are not included in Japan’s sales figures as stated above (although included in segment profit (operating profit)). Further, the above sales figures are “sales to customers,” and the inter-segment sales, which are not limited to the above-mentioned royalties, are eliminated as internal transaction sales.

2 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016 i. Japan: Sales fell 4.9% year-on-year to 22.6 billion yen and operating profit fell 43.2% to 2.7 billion yen In the previous fiscal period, product sales in Japan achieved vigorous double-digit growth due to “binge buying” by foreign tourists in stores in city centers and the metropolitan area. However, import duties levied by the Chinese government on goods bought overseas from April 8, 2016 have caused the average spending per customer to fall despite a rise in the number of foreign tourists. This has led to a slowdown in the retail industry, especially in department stores. Furthermore, the sense of recession starting with the slowdown in the stock market from the start of the year has reduced consumer confidence. In this situation, the decline in master license fees from overseas subsidiaries and other factors has continuously led to a fall in both sales and profits in Japan as a whole. In the domestic product sales business, a conservative consumer mindset bent on economizing out of a sense of recession and a fall in total units sold to tourists from the Chinese mainland has left stores facing an uphill struggle. In this situation, Pom Pom Purin, which celebrated its 20th anniversary this year, , which celebrates its 15th next year, and Gudetama proved popular among the youth segment and contributed to an increase in profits. As a result, same-store sales (based on directly owned stores and directly operated shops within department stores) decreased 5.8% year-on-year. In October 2016, a store complex named Japan in DiverCity Tokyo equipped with a food and drink corner opened with expanded floor space. Elsewhere, Sanrio outlets opened at Shisui and Iruma in Chiba and Saitama prefectures, respectively. Looking toward the second half, we will monitor consumer intentions and undertake store opening policies and innovative product development in line with the hopes of diverse consumers. In the domestic licensing business, sales and profits fell following a slump in apparel due to unseasonable weather and a sense of hiatus in digital content. New characters including I’m Doraemon, Littleforestfellow, and Rilu Rilu Fairilu performed well, as did cosmetic and treatment products including Johnson & Johnson’s Baby Oil, DHC’s supplements, and ettusais’ face-cleanser and skin-care products. In addition, we are building up a track record of character use in new fields including Kawasaki City buses, Hato buses, the Keihan Railway, and the New Chitose Airport Terminal in transportation; space decoration for facilities; novelties for the Japan Racing Public Relations Center; and self-liquidation for Maebata Commerce as we proactively expand promising markets. In the theme parks business, visitor numbers at Harmony Land in Oita prefecture fell by 33,000, or 38.0%, year-on-year to 53,000 during the first quarter due to the large impact of an earthquake in the Kumamoto region occurring on April 14, 2016. In July and August of 2016, the Company achieved a year-on-year rise in visitor numbers. This was accomplished due to the implementation of measures to revive Kyushu sightseeing including the Kyushu Sightseeing Round-trip Drive Pass1 and the Kyushu Fukko Wari (reconstruction discount).2 Another factor was the popularity of a pool facility opened for children to enjoy during the limited period of the summer vacation, a “ghost dance” using characters as a new summer-only event, a 107-meter large-scale slider, a “water splash carnival” as a summer-only event, night parades, and illumination night shows with fireworks. However, the impact of typhoon that hit the area in a three-day weekend in September led to a major year-on-year decline. As a result, visitor numbers fell by 19.7%, year-on-year to total 208,000 during the first half. Operating profit fell due to a decline in sales accompanying falling visitor numbers despite a decrease in sales promotions and advertising expenses. 1. http://www.michitabi.com/roundtour/kyushu1607/ 2. http://kyushu-fukkou.jp/ At Sanrio Puroland in Tokyo’s Tama City, the all-male musical Little Hero and the Miracle Gift Parade, both of which were started in the previous fiscal year, are continuously gaining good reviews and the number of repeat visitors is increasing. As a result, sales of the annual passport rose 27% year-on-year and the number of visitors using the student on-line discount rose 34.6%. Moreover, the percentage of overseas visitors grew 4.6% as visitors shifted from group to private use. As a result, visitor numbers rose by 58,000, or 10.7%, year-on-year to total 606,000. Meanwhile, operating profits increased as the rise in sales profits exceeded costs incurred through an extension of opening hours, depreciation including the creation of the parade in the previous period, and maintenance for the roof and other areas. In the domestic theme parks business overall, sales rose 2.0% year-on-year to 3.9 billion yen and the operating loss decreased by 0.1 billion yen to 20 million yen.

3 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016 ii. Europe: Sales fell 48.4% year-on-year to 1.6 billion yen and operating profit fell 76.1% to 0.1 billion yen In Europe the severe consumer environment persisted, leading to a fall in sales and profits. Sales performed poorly in the core apparel, accessories, toys, and foodstuff sectors but were strong in the publishing and movie sectors. In the European region, sales rose in some regions including Russia and the three Baltic states, but in Western European countries, led by the core UK region, the market has been affected by the tendency to avoid venturing out to events and large-scale commercial facilities since the Belgian terror incidents in March 2016. In this environment, we aim to follow the successful Asian model of accelerating characters exposure through promotional licenses for character cafés and corporate sales promotion (corporation promotion licenses) while holding strategic conferences in European locations with agents who negotiate with licensees on behalf of Sanrio. We also aim to strengthen operations by diversifying characters including Gudetama and Mr. Men and Little Miss and sharing brand development strategies. In addition, we are proceeding with the goal of maintaining and strengthening the operational structure for the licensing business in local areas within the year. iii. North America: Sales fell 30.8% year-on-year to 2.0 billion yen and operating loss stood at 0.3 billion yen, a fall of 0.5 billion yen In the United States, sales and profits fell as major volume retailers continued to reduce shelf space for the Hello Kitty licensed products. Cosmetics targeting young adults proved popular but children’s apparel, household supplies, and toys performed poorly at the major volume retailers. Following on from the success of the Hello Kitty character, Gudetama went on sale at specialty stores from November 2015 and was well received. Moreover, product commercialization was agreed on for several new specialty stores within the year. However, it was unable to cover the sales fall for Hello Kitty. The Company is focusing on and getting a good reputation for product licence acquisition at P&G, OPI, and other companies as well as promotional licences for ventures including the Hello Kitty Cafe Trucks and sushi chain. From May to June 2016, the Company hosted the Sanrio Character Awards for the first time in North America. In the future, we aim to increase exposure for Hello Kitty, Chococat, and Gudetama and enhance profits through promoting character strategies. iv. Latin America: Sales fell 27.9% year-on-year to 0.4 billion yen and operating profit fell 13.8% to 0.1 billion yen Sales stabilized in Mexico, which provides half the revenue for the Latin American region, but fell in Brazil, Venezuela, Columbia, and other countries facing economic and political instability. Meanwhile, sales rose in Peru and Argentina. In Argentina, the default on the national debt (non-performing loans) in July 2014 halted transactions with local agencies alongside procedures to halt remittances overseas but growth occurred as transactions with some agencies resumed. Sales declined in Brazil’s key licensing category of bags, apparel and accessories, but grew for cosmetics, household goods and home appliances. In June, developments with the provision of McDonald’s “happy meals” began at restaurants in 15 countries across Latin America, and we anticipate contribution to licensee acquisition in the second half. v. Asia: Sales fell 3.5% year-on-year to 4.5 billion yen and operating profit fell 4.2% to 1.5 billion yen In Hong Kong and Southeast Asia, in addition to sales of Japan-planned products being transferred for handling in the head office from the previous second quarter, the Hong Kong economy has slumped and product sales fallen due to visa restrictions imposed on visitors from the Chinese mainland. Concerning license sales, promotional license sales grew in Hong Kong while product license sales for household supplies, apparel, and foodstuffs grew in Thailand, Singapore, and Malaysia, ensuring that operating profit increased year-on-year despite sales declining throughout the region as a whole. Promotional licenses for Gudetama, especially for large-scale convenience stores, contributed to profits in Hong Kong and Thailand. In November 2016 new Gudetama cafés will open, and we aim to acquire licensees through hosting marathon races featuring our main character in Singapore, Hong Kong, and Indonesia and enhancing brand recognition. In South Korea, sales fell year-on-year despite the contribution of a licensing contract for Gudetama with a major cosmetics company as the consumption environment deteriorated due to an economic slump and contracts with a

4 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016 product sales agency came to a close. By category, cosmetics, games, and software did well but household supplies and stationery performed poorly. Operating profit fell as selling, general, and administrative expenses rose in the areas of personnel and use of assets due to an increase both in the number of personnel required for the licensing organizational structure and office floor space. Promotional licenses for Happy Meal promotions in a leading food service industry as a measure to enhance Gudetama’s brand recognition contributed to sales. We aim to strengthen product license and space license sales, including space license products of Hello Kitty in line with the pre-opening of new shopping center at N Seoul Tower in July, and to reach the profit target. In Taiwan, Gudetama license income doubled year-on-year and contributed to profits. In addition to product licenses, promotional licenses for use within Taiwan’s trains, at exhibitions in Kaohsiung, and elsewhere performed well. By category, special corporate sales, stationery, and accessories did badly while apparel, consumer electronics, and cosmetics performed well. A change of government for the first time in eight years led to a sense of slowdown in the economy. However, we aim to grow stronger and expand profits through distribution campaigns centered on Gudetama in convenience stores and elsewhere; events such as Pom Pom Purin exhibitions following on from Gudetama exhibitions in the previous period; a Gudetama paddy field art exhibition in Tainan City; and by strengthening collaboration with other companies. In China, product license income from KTL fell in the accessories category due to a declining trend in the jewelry and gold industries as government policies led to rising prices of gold. License income also fell for apparel and foodstuff but rose by double digits for household supplies, shoes, cosmetics, and stationery. Moreover, campaigns run by a local subsidiary in Ningbo, including those for Hello Kitty coffee shops and Sanrio Mixed Characters at a major restaurant chain contributed to a rise in profits. Meanwhile, a rise in sales and profits was ensured on local currency basis despite the increase in costs from a contract renewal with KTL. In March, the sale of licensed products at major global white goods manufacturers began and has been favorably received. Moreover, we anticipate building profits with a plan to develop products starting in the third quarter due to the acquisition of trademark certificate registration of Gudetama at the Chinese mainland.

Reference: Sales and operating profit by overseas subsidiary (local currency before consolidation eliminations on an unconsolidated basis) Sales (Unit: thousand) Operating profit Royalties Product sales Total Germany (EUR) 11,689 46 11,736 1,738 Year-on-year change (%) (45.1) (82.6) (45.6) (67.3) Britain (GBP) 3,435 70 3,505 338 Year-on-year change (%) (0.0) (13.3) (0.3) (51.9) North America (USD) 12,684 5,717 18,402 (2,755) Year-on-year change (%) (33.1) (5.1) (26.4) - Brazil (BRL) 15,668 120 15,788 4,815 Year-on-year change (%) (5.2) 364.2 (4.6) 16.8 Chile (Peso) 35,090 - 35,090 17,438 Year-on-year change (%) - - (15.0) (47.2) Hong Kong (HKD) 62,736 41,140 103,877 31,786 Year-on-year change (%) 18.6 (36.3) (11.6) 14.7 Taiwan (NTD) 212,920 24,846 237,766 72,526 Year-on-year change (%) (4.9) (0.7) (4.5) (6.2) South Korea (KRW) 4,554,074 641,860 5,195,935 1,077,940 Year-on-year change (%) 2.2 (48.5) (8.9) (34.3) Shanghai (CNY) 79,038 47,475 126,513 38,005 Year-on-year change (%) 10.1 8.0 9.3 12.3

5 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

(2) Explanation of Financial Position

At the end of the first half of the current fiscal year, total assets stood at 100.1 billion yen, a decrease of 5.6 billion yen from the end of the previous fiscal year. The main decreases were 1.8 billion yen in trade notes and accounts receivable, 1.6 billion yen in investments and other assets, 0.6 billion yen in investment securities, and .0.6 billion yen in intangible fixed assets. Liabilities increased 0.3 billion yen from the end of the previous fiscal year to 51.4 billion yen. The main increasing factor was short-term borrowings of 2.0 billion yen. The main decreasing factors were other current liabilities of 1.0 billion yen and net defined benefit liability of 0.7 billion yen. Net assets decreased 6.0 billion yen from the end of the previous fiscal year to 48.6 billion yen. There was an increase of 3.8 billion yen in retained earnings as mainly a result of an increase from net profit attributable to owners of parent and a decrease of 3.3 billion yen in retained earnings due to dividend payments. Other decreasing factor includes 6.6 billion yen in foreign currency translation adjustments. The equity ratio was 48.3%, down 3.1 percentage points from the end of the previous fiscal year.

(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements In the theme parks business, while Harmony Land in Oita prefecture saw the number of visitors fall due to the effects of the earthquake that struck Kumamoto in April 2016, visitor numbers to Sanrio Puroland in Tokyo’s Tama city rose strongly, achieving double-digit growth. In addition, popular characters appeared including Hello Kitty, My Melody, Little Twin Stars, Pom Pom Purin, and Gudetama. Moreover, the Asian region, focused on the Chinese mainland, performed well with the exception of Hong Kong and South Korea, which face economic difficulties. Meanwhile Europe and the Americas were affected by intensifying competition from a shift towards movie characters among licensees. In the former region, this led to a weak second-quarter performance following a better-than-planned first quarter results. In the latter, which performed below plan, it led to a more severe situation than had been anticipated when drafting the initial plan. In the domestic product sales business, the number of tourists visiting Japan from overseas continued to increase but the raising of customs duties by the Chinese government in April and the appreciation of the yen on foreign exchange markets led to a decline in “binge shopping” and a general sense of recession in the retail business. Considering this situation comprehensively, the Company feels that its performance has weakened overall and predicts that the yen’s appreciating trend on foreign exchange markets will continue. Accordingly, the full-year forecasts announced on July 29, 2016 will be revised as follows. Moreover, there will be no change to the interim and year-end dividends of 40 yen per share each as stated in the initial plan.

Revised Consolidated Forecasts for FY2016 (April 1, 2016 – March 31, 2017) Sales Operating Profit Ordinary Profit Net Profit Net Profit per Share Millions of yen Millions of yen Millions of yen Millions of yen Yen Previous forecast (A) 71,900 12,400 12,700 10,000 117.86 (announced on July 29, 2016) Revised forecast (B) 66,400 9,400 9,400 8,000 94.29 Difference (B-A) (5,500) (3,000) (3,300) (2,000) - Change (%) (7.6) (24.2) (26.0) (20.0) - Reference: FY2015 results 72,476 12,675 13,178 9,609 112.08 (Fiscal year ended Mar. 31, 2016)

6 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

Reference: Overseas Sales and Profits for the Past Six-month Periods by Area (Millions of yen) Sales to customers Operating profit Six months ended Sep. 2014 Sep. 2015 Change Sep. 2016 Change Sep. 2014 Sep. 2015 Change Sep. 2016 Change Areas (%) (%) (%) (%) North U.S.A. 4,181 3,000 (28.2) 2,076 (30.8) 973 207 (78.7) (311) - America Latin Brazil/Chile 942 672 (28.7) 484 (27.9) 327 173 (47.0) 149 (13.8) America Hong Kong 1,898 1,807 (4.8) 1,656 (8.3) 439 507 15.4 564 11.2 Taiwan 676 899 33.0 773 (14.0) 234 299 27.6 250 (16.4) Asia South Korea 567 616 8.7 496 (19.4) 215 180 (16.5) 103 (42.5) China 516 1,362 163.6 1,594 17.0 367 655 78.1 654 (0.1) Subtotal 3,659 4,685 28.1 4,521 (3.5) 1,257 1,641 30.5 1,572 (4.2) Germany 3,957 2,917 (26.3) 1,459 (50.0) 1,143 721 (36.9) 218 (69.8) Europe Britain 334 339 1.4 223 (34.2) 104 69 (33.4) (28) - Subtotal 4,292 3,256 (24.1) 1,682 (48.4) 1,247 791 (36.6) 189 (76.1) Total 13,074 11,615 (11.2) 8,764 (24.5) 3,807 2,813 (26.1) 1,600 (43.1)

2. Matters Related to Summary Information (Notes) (1) Changes in Consolidated Subsidiaries during the Period Not applicable.

(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements Not applicable.

(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements Changes in Accounting Policies Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016 Following the revised Corporation Tax Law, the Company has adopted the “Practical Solution on a Change in Depreciation Method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32, June 17, 2016) from the first quarter of the current fiscal year, and changed the method for the depreciation of facilities attached to buildings and structures acquired on or after April 1, 2016, from the declining-balance method to the straight-line method. The effect of this change on earnings in the first half of the current fiscal year is insignificant.

(4) Additional Information Application of Guidance on Recoverability of Deferred Tax Assets The Company has applied the “Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, March 28, 2016) from the first quarter of the current fiscal year.

7 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

3. Quarterly Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) FY2015 Second quarter of FY2016

(As of Mar. 31, 2016) (As of Sep. 30, 2016) Assets Current assets Cash and deposit 41,080 40,523 Trade notes and accounts receivable 9,433 7,615 Merchandise and finished goods 4,158 4,501 Work in process 14 30 Raw materials and supplies 128 131 Other accounts receivable 1,326 1,328 Other 1,802 1,827 Allowance for doubtful accounts (186) (97) Total current assets 57,757 55,862 Fixed assets Tangible fixed assets Buildings and structures, net 6,909 6,404 Land 9,878 9,651 Other, net 1,957 1,884 Total tangible fixed assets 18,744 17,941 Intangible fixed assets 5,200 4,517 Investments and other assets Investment securities 11,980 11,284 Deferred tax assets 4,530 4,370 Other 9,576 7,884 Allowance for doubtful accounts (2,026) (1,788) Total investments and other assets 24,060 21,750 Total fixed assets 48,006 44,209 Deferred assets 62 61 Total assets 105,826 100,133 Liabilities Current liabilities Trade notes and accounts payable 5,019 5,048 Short-term borrowings 5,600 7,609 Accrued income taxes 998 875 Allowance for bonuses 510 512 Provision for point card certificates 100 103 Provision for shareholder benefit program 54 51 Reserve for adjustment of returned goods 55 61 Other 10,683 9,635 Total current liabilities 23,022 23,898 Long-term liabilities Corporate bonds 5,225 5,635 Long-term borrowings 7,516 7,577 Net defined benefit liability 12,161 11,427 Other 3,166 2,930 Total long-term liabilities 28,070 27,570 Total liabilities 51,092 51,469

8 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

(Millions of yen) FY2015 Second quarter of FY2016

(As of Mar. 31, 2016) (As of Sep. 30, 2016) Net assets Shareholders’ equity Capital 10,000 10,000 Capital surplus 3,423 3,423 Retained earnings 55,950 56,360 Treasury stock (11,789) (11,789) Total shareholder’s equity 57,585 57,995 Accumulated other comprehensive income Net unrealized gain (loss) on other securities (369) (680) Deferred hedge gain (loss) (39) (40) Foreign currency translation adjustments 2,458 (4,144) Remeasurements of defined benefit plans (5,227) (4,788) Total accumulated other comprehensive income (3,177) (9,653) Stock acquisition rights 162 162 Non-controlling interests 164 160 Total net assets 54,733 48,664 Total liabilities and net assets 105,826 100,133

9 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements Consolidated Income Statements (For the Six-month Period) (Millions of yen) First six months of FY2015 First six months of FY2016

(Apr. 1, 2015 – Sep. 30, 2015) (Apr. 1, 2016 – Sep. 30, 2016) Sales 35,458 31,451 Cost of sales 11,281 10,893 Gross profit 24,177 20,558 Reversal from reserve for adjustment of returned goods 6 6 Net gross profit on sales 24,171 20,552 Selling, general and administrative expenses 16,993 16,665 Operating profit 7,177 3,887 Non-operating profit Interest income 217 222 Dividend income 135 103 Other income 149 137 Total non-operating profit 502 463 Non-operating expenses Interest expense 136 107 Foreign exchange loss 77 367 Other 203 146 Total non-operating expenses 417 621 Ordinary profit 7,262 3,729 Extraordinary gains Gain on sales of fixed assets 0 - Gain on sales of investment securities 632 104 Total extraordinary gains 633 104 Extraordinary losses Loss on disposal of fixed assets 17 25 Impairment loss 2 20 Other - 14 Total extraordinary losses 20 59 Net profit before income taxes 7,875 3,773 Income taxes – current 2,087 1,177 Refund of income taxes - (1,125) Income taxes – deferred 365 (103) Total income taxes 2,453 (51) Net profit 5,422 3,825 Net profit attributable to non-controlling interests 19 21 Net profit attributable to owners of parent 5,402 3,804

10 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

Consolidated Comprehensive Income Statements (For the Six-month Period) (Millions of yen) First six months of FY2015 First six months of FY2016

(Apr. 1, 2015 – Sep. 30, 2015) (Apr. 1, 2016 – Sep. 30, 2016) Net profit 5,422 3,825 Other comprehensive income Net unrealized gain (loss) on other securities (706) (311) Deferred hedge gain (loss) (21) (0) Foreign currency translation adjustments (859) (6,628) Remeasurements of defined benefit plans, net of tax 185 439 Total other comprehensive income (1,400) (6,501) Comprehensive income 4,021 (2,675) Comprehensive income attributable to Comprehensive income attributable to owners of 3,998 (2,672) parent Comprehensive income attributable to 23 (3) non-controlling interests

11 Sanrio Company, Ltd. (8136) Financial Results for the Second Quarter of FY2016

(3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Not applicable.

Significant Changes in Shareholders’ Equity Not applicable.

Segment and Other Information I. First six months of FY2015 (Apr. 1, 2015 – Sep. 30, 2015) 1 .Information related to sales and profit or loss for each reportable segment (Millions of yen) Reportable segment Amounts shown Adjustment on consolidated North Latin Japan Europe Asia Total (Note 1) income statements America America (Note 2) Sales Customers 23,843 3,256 3,000 672 4,685 35,458 - 35,458 (Royalty income) ( 5,204) ( 3,219) ( 2,284) ( 670) ( 3,791) ( 15,170) ( -) ( 15,170) Inter-segment 4,721 29 11 7 1,192 5,962 (5,962) - (Royalty income) ( 4,541) ( 28) ( 0) ( -) ( 33) ( 4,603) ( (4,603)) ( -) Total 28,565 3,286 3,011 679 5,877 41,421 (5,962) 35,458 Segment profit 4,794 791 207 173 1,641 7,608 (430) 7,177 Notes: 1. The minus 430 million yen adjustment to segment profit is the sum of eliminations for inter-segment transactions and unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any particular segment. 2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements.

2. Information related to impairment losses on fixed assets, goodwill, etc. for each reportable segment Detailed explanations are omitted due to immateriality of the amount.

II. First six months of FY2016 (Apr. 1, 2016 – Sep. 30, 2016) 1. Information related to sales and profit or loss for each reportable segment (Millions of yen) Reportable segment Amounts shown Adjustment on consolidated North Latin Japan Europe Asia Total (Note 1) income statements America America (Note 2) Sales Customers 22,687 1,682 2,076 484 4,521 31,451 - 31,451 (Royalty income) ( 4,874) ( 1,675) ( 1,433) ( 483) ( 3,763) ( 12,231) ( -) ( 12,231) Inter-segment 3,328 26 3 2 791 4,153 (4,153) - (Royalty income) ( 3,245) ( 26) ( -) ( -) ( 1) ( 3,274) ( (3,274)) ( -) Total 26,015 1,709 2,080 487 5,313 35,605 (4,153) 31,451 Segment profit 2,723 189 (311) 149 1,572 4,323 (435) 3,887 (loss) Notes: 1. The minus 435 million yen adjustment to segment profit (loss) is the sum of eliminations for inter-segment transactions and unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any particular segment. 2. Segment profit (loss) is adjusted to be consistent with operating profit shown on the consolidated income statements.

2. Information related to impairment losses on fixed assets, goodwill, etc. for each reportable segment Detailed explanations are omitted due to immateriality of the amount.

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

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