February 4, 2011 Summary of Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2011 (FY2010) (Nine Months Ended December 31, 2010) [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, Managing Director TEL: +81-3-3779-8058 Scheduled date of filing of Quarterly Report: February 14, 2011 Starting date of dividend payment: - Preparation of supplementary materials for quarterly financial results: Yes Holding of quarterly financial results meeting: None (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Third Quarter of FY2010 (April 1, 2010 – December 31, 2010) (1) Consolidated results of operations (Percentages represent year-on-year changes) Sales Operating Profit Ordinary Profit Net Profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % Nine months ended Dec. 31, 2010 57,547 6.0 11,355 85.8 10,256 92.2 6,679 130.4 Nine months ended Dec. 31, 2009 54,285 (1.5) 6,110 5.2 5,336 5.9 2,899 63.2

Fully-Diluted Net Net Profit per Share Profit per Share Yen Yen Nine months ended Dec. 31, 2010 74.09 67.89 Nine months ended Dec. 31, 2009 29.16 28.50

(2) Consolidated financial position Total Assets Net Assets Equity Ratio Net Assets per Share Millions of yen Millions of yen % Yen As of Dec. 31, 2010 88,682 30,097 33.9 277.17 As of Mar. 31, 2010 85,765 31,594 36.8 241.62 (Reference) Shareholders’ equity (millions of yen) Dec. 31, 2010: 30,064 Mar. 31, 2010: 31,563

2. Dividends Dividend per Share 1Q-end 2Q-end 3Q-end Year-end Total

Yen Yen Yen Yen Yen FY2009 - 0.00 - 10.00 10.00 FY2010 - 5.00 - FY2010 (forecast) 15.00 20.00 Note: 1. Revision of dividend forecast during the period: Yes Note: 2. The dividend figures above show dividends for common stock. Please refer to “Dividends of classified stock” (after-mentioned) for information on dividends for unlisted classified stock whose rights are different from those of the Company’s common stock. Note: 3. Dividends per share for fiscal year ending March 2011 include ¥5 paid at the end of the second quarter and ¥5 (projected) payable at the end of the fiscal year (a total of ¥10) to commemorate the 50th anniversary of the Company’s founding.

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2011 (April 1, 2010 – March 31, 2011) (Percentages represent year-on-year changes) Net Profit per Sales Operating Profit Ordinary Profit Net Profit Share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 74,500 0.8 12,900 38.9 11,700 41.8 7,000 60.1 77.26 Note: Revision of consolidated forecast during the period: Yes

4. Others (Please refer to “Other Information” on page 6 of the attached documents for further information) (1) Changes in consolidated subsidiaries during the period: None Newly added: - Excluded: - Note: Changes in designated subsidiaries affecting the scope of consolidation during the period

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

(3) Changes in accounting principles, procedures, presentation methods, etc. 1) Changes caused by revision of accounting standards: Yes 2) Other changes: None Note: Changes of accounting principles, procedures, presentation methods, etc. for presenting quarterly consolidated financial statements described in “Changes in the Significant Accounting Policies for the Preparation of Quarterly Consolidated Financial Statements”

(4) Number of outstanding shares (common stock) 1) Number of outstanding shares at the end of period (including treasury stock) Dec. 31, 2010: 89,065,301 shares Mar. 31, 2010: 88,148,431 shares 2) Number of treasury stock at the end of period Dec. 31, 2010: 743,156 shares Mar. 31, 2010: 847,515 shares 3) Average number of shares outstanding during the period Nine months ended Dec. 31, 2010: 87,687,373 shares Nine months ended Dec. 31, 2009: 87,301,105 shares

* Information regarding the implementation of quarterly review procedures The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments and Exchange Act. At the time of disclosure, we have completed the review process for these consolidated statements.

* Cautionary statement with respect to forward-looking statements Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ significantly from these forecasts for a number of factors. Please refer to “Qualitative information regarding forecasts for consolidated business results” on page 5 for forecast assumptions and notes of caution for usage.

Dividends of classified stock Breakdown of dividends for classified stock whose rights are different from those of common stock are shown below. Dividend per share Class B preferred stock 1Q-end 2Q-end 3Q-end Year-end Total Yen Yen Yen Yen Yen

FY2009 - 0.00 - 469.00 469.00 FY2010 - 225.50 - FY2010 (forecast) 225.50 451.00

Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

Attachments Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance 2 (1) Qualitative information regarding consolidated business results 2 (2) Qualitative information regarding consolidated financial position 4 (3) Qualitative information regarding forecasts for consolidated business results 5

2. Other Information 6 (1) Overview of changes in consolidated subsidiaries 6 (2) Overview of application of simplified accounting methods and special accounting methods 6 (3) Overview of changes in accounting principles, procedures, presentation methods, etc. 6

3. Quarterly Consolidated Financial Statements 7 (1) Consolidated Balance Sheets 7 (2) Consolidated Income Statements 9 (For the Nine-month Period) (3) Consolidated Cash Flow Statements 10 (4) Going Concern Assumption 11 (5) Segment Information, etc. 11 (6) Significant Changes in Shareholders’ Equity 13

1 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Qualitative information regarding consolidated business results The global economy performed strongly in the first nine months of the current fiscal year, supported by a solid recovery in U.S. markets and high growth in the emerging countries, especially China. Fears of a double-dip recession receded, and consumer spending gradually recovered against a backdrop of rising share prices. The domestic economy saw an improved income environment, as major corporations paid winter bonuses exceeding those of the previous winter for the first time in three years. Signs of a recovery in consumer spending are now showing, although concerns over the impact of the strong yen remain. Amid these conditions, total sales rose 6.0% year-on-year to 57.5 billion yen for the nine-month period. Domestic sales fell 3.3% to 36.3 billion yen while overseas sales rose 27.1% to 21.1 billion yen, buoyed by strong growth in the European region, to create an overseas sales ratio of 36.8% (up 6.1 percentage points). Operating profit rose 85.8% to 11.3 billion yen due to the above-mentioned strong performance in Europe combined with a recovery in the domestic licensing businesses and theme parks. Ordinary profit rose 92.2% year-on-year to 10.2 billion yen, affected by interest payments, withholding tax on overseas royalty income, and foreign exchange losses related to the collection of trade accounts receivables from overseas subsidiaries, revaluation of forward exchange contracts and other items. Net profit before income taxes and other adjustments rose 104.9% year-on-year to 9.5 billion yen. This sum includes 0.4 billion yen of asset retirement obligation and 0.09 billion yen of valuation loss on investment securities as extraordinary losses; an impairment loss of 0.2 billion yen for land and buildings of a previously directly managed store owned by Sanrio; and a 0.2 billion yen provision of allowance for doubtful accounts for loan claims relating to unconsolidated subsidiaries. Accordingly, net profit rose 130.4% year-on-year to 6.6 billion yen. Since the fiscal year-end for all overseas consolidated subsidiaries is December, the nine-month period under review covers the period from January to September 2010.

Reportable Segment (100 millions of yen) Sales Segment profits (operating profit) Increase/ Increase/ First nine months of FY2009 FY2010 Change % FY2009 FY2010 Change % decrease decrease Product sales/others 333 317 (16) (4.9) Royalties 54 62 7 13.8 27 63 36 129.2 Total 388 379 (8) (2.3) Product sales/others 30 25 (5) (16.8) Europe Royalties 49 83 33 69.2 25 38 12 49.6 Total 80 108 28 35.9 Product sales/others 10 11 0 9.0 North Royalties 23 25 2 10.9 5 8 2 54.9 America Total 34 37 3 10.3 Product sales/others 0 0 0 25.7 Latin Royalties 6 7 0 11.0 2 1 (1) (55.1) America Total 7 7 0 12.3 Product sales/others 21 27 5 24.8 Asia Royalties 11 13 2 26.3 2 5 3 119.1 Total 32 41 8 25.3 Adjustment - - - - (3) (4) (1) - Product sales/others 398 383 (15) (3.8) Consolidated Royalties 144 192 47 32.9 61 113 52 85.8 Total 542 575 32 6.0 Note: All regional subsidiaries overseas calculate amount of royalty revenue commensurate with 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 (although segment profits are included).

2 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

i. Japan: Sales fell 2.3% year-on-year to 37.9 billion yen, and operating profit rose 129.2% to 6.3 billion yen The fall in sales that occurred despite revenue growth in the licensing business, both in Japan and overseas, was mainly attributable to declining product sales in the direct owned stores, wholesale (department and chain stores), and convenience store sectors and the targeting of new titles to focus on profitability in the publishing business. The rise in profits was mainly due to the strong performance of the licensing business both within Japan and overseas, with an increase in royalty revenues from foreign subsidiaries making an especially strong contribution. The fall in sales in the domestic product sales business arose largely as a pendulum reaction to the sales of goods commemorating the 35th anniversary of in the previous fiscal year, which had been a great hit. Meanwhile, the strong performance of the domestic licensing business arose from successful collaboration focused on clothing and accessories creating a ripple effect among other licensee companies, and leading to a strong contribution from “Jewelpet” in addition to “Hello Kitty.” Domestic same-store-sales (based on directly owned stores and directly operated shops within department stores) performed at 97.3% of the previous year’s level. In the theme park business, sales rose 0.2 billion yen, or 7.2% year-on-year, to 4.1 billion yen with an operating loss of 0.2 billion yen (a year-on-year improvement of 0.3 billion yen), boosted by factors such as a sharp rise in the number of visitors from events held over the first three quarters. This was mainly attributable to a high number of visitors at in Tama City, Tokyo. The dynamic appeal to groups of overseas visitors, sales of our annual passport, and special benefit plans for shareholders contributed especially to the rise in the number of visitors and higher sales, while major reductions in the cost of putting on show events aided profits. Harmony Land in Oita Prefecture secured a year-on-year rise in the number of visitors, despite inclement holiday weather, due to a rise in the visitors from overseas and a jump in night-time visitors to see the illuminations in November and December 2010. The number of visitors rose 83,000 year-on-year to reach 622,000 at Sanrio Puroland, and rose 21,000 to 263,000 at Harmony Land. Sales also rose in the restaurant and robot production businesses, shrinking revenue losses by 0.1 billion yen year-on-year. ii. Europe: Sales rose 35.9% year-on-year to 10.8 billion yen, and operating profit rose 49.6% to 3.8 billion yen The European economies generally performed well despite fears of fiscal collapse in some countries. The Company’s licensing business grew strongly in this environment, shrugging off the impact of the strong yen to create a sharp rise in sales and profits. By region, licenses expanded rapidly in Italy, France, Germany, Spain, and the UK, and by product category in apparel and toys. iii. North America: Sales rose 10.3 % year-on-year to 3.7 billion yen, and operating profit rose 54.9% to 0.8 billion yen License and product sales both rose year-on-year while profits increased overall in the North American market. The main factor was the strong performance of the licensing business in areas including financial institutions and fashion related companies. License growth in the toy sector was especially strong. iv. Latin America: Sales rose 12.3% year-on-year to 0.7 billion yen, and operating profit fell 55.1% to 0.1 billion yen In Brazil, the Company took initiatives to stimulate the market, including 50th anniversary events and collaborations with famous artists. Sales fell on a local currency basis, however, due to licensee production adjustments in the footwear category, which had previously performed strongly. In Chile, Argentina, and other South American countries, markets expanded and sales grew, influenced by local currency movements. Meanwhile profits fell, mainly due to a review of the royalty distribution ratios paid out to the Company.

3 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010 v. Asia: Sales rose 25.3% year-on-year to 4.1 billion yen, and operating profit rose 119.1% to 0.5 billion yen In , sales and profits increased due to a generally strong licensing performance (including an events-generated sales rise) and a rise in product exports to North America. In , sluggish consumption led to falling product sales, but licensing income rose slightly due to contributions from areas such as mobile phones and e-commerce, returning a surplus overall. In , product sales of “Jewelpet” and joint-venture licenses did well, with the restaurants and amusement facilities of Hello Kitty Town also contributing, leading to a rise in both sales and profits. In China, distributor shop sales also showed a recovery trend, and a strong performance from licenses to a major manufacturer of apparel for adults (a new initiative) led to a rise in both sales and profits.

(2) Qualitative information regarding consolidated financial position At the end of third quarter, total assets stood at 88.6 billion yen, a rise of 2.9 billion yen from the end of the previous fiscal year. The items that changed most significantly were a rise of 2.9 billion yen in cash and deposits and 2.3 billion yen in trade notes and accounts receivable, with a fall of 0.9 billion yen in other current assets (mainly due to a decline in deferred tax assets), 0.8 billion yen in tangible and intangible fixed assets, and 0.9 billion yen in other investment assets due to collection of guarantee deposits. Liabilities rose 4.4 billion yen to 58.5 billion yen. The main increases were 1.4 billion yen in trade notes and accounts payable, 1.2 billion yen in corporate bonds (including the portion to be redeemed within one year), and 1.1 billion yen in combined short- and long-term borrowings. In the net assets category, capital fell 4.9 billion yen while capital surplus rose 0.6 billion yen. This was due to a reduction of capital and transfer to other capital surplus leading to a 4.3 billion yen retirement of treasury stock (400,000 shares of Class B preferred stock). Retained earnings rose 4.7 billion yen due to a 6.6 billion yen increase in quarterly net profits less 1.9 billion yen in dividends paid. Due to the above factors, in addition to a 1.6 billion yen fall in foreign currency translation adjustments, net assets declined by 1.4 billion yen to 30.0 billion yen. The equity ratio was 33.9%, falling 2.9 percentage points from the end of the previous fiscal year. Cash flows from operating activities amounted to an inflow of 8.6 billion yen (a year-on-year increase in inflow of 3.2 billion yen). This was mainly attributable to operating profit of 11.3 billion yen (a rise in inflow of 5.2 billion yen) and depreciation and provisions of 0.6 billion yen (a fall in inflow of 0.2 billion yen) set against outflows of 1.8 billion yen (a rise in outlays of 0.3 billion yen) for working capital including accounts receivable, inventories, and accounts payable, and 1.6 billion yen (a rise in outlays of 0.4 billion yen) for income taxes paid. Cash flows from investing activities resulted in an outflow of 1.8 billion yen (a year-on-year increase in outlays of 0.5 billion yen). This was mainly attributable to inflows of 0.6 billion yen for withdrawal of time deposits, and 0.5 billion yen for collection of guarantees, and set against outflows of a 1.7 billion yen payments for time deposits, 0.7 billion yen for the purchase of tangible fixed assets and 0.7 billion yen for purchase of investment securities. Cash flows from financing activities resulted in an outflow of 3.9 billion yen (a year-on-year increase in outlays of 2.8 billion yen). This was mainly attributable to inflow of 2.3 billion yen from the balance of corporate bonds (issue and redemption) and borrowings (loans received and repayment) set against outflows of 4.3 billion yen from the purchase of treasury stock and 1.8 billion yen in dividends paid. As a result of the above, cash and cash equivalents at the end of the third quarter increased 1.9 billion yen from the end of the previous fiscal year to 20.0 billion yen.

4 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(3) Qualitative information regarding forecasts for consolidated business results Fears of a double-dip recession in the global economy have faded, and the developed countries are anticipated to follow a gradual recovery trend, supported by high growth in the emerging countries. Within this environment, the domestic licensing, which rebounded from the start of the current period after bottoming out, and the European licensing, which continued to enjoy high growth, are expected to surpass the plan in the figures (currently being compiled) for October to December 2010 period. The full-year consolidated figures have been revised, therefore, as shown on the first page of this quarterly results summary. Concerning dividends, in with the current upward revision, an additional divided of 5 yen was added per share at the end of the second quarter to commemorate Sanrio’s 50th founding anniversary, and a further commemorative dividend of 5 yen will be added at the end of the current fiscal year. Accordingly, the dividend for the fiscal year will be 20 yen per share, comprising ordinary and commemorative dividends of 10 yen each. Moreover, the medium-term business plan, released on May 14, 2010 is currently under review in line with the upward revision of the current full-year results outlook, and is planned for release together with the current period’s full-year results to be announced in May 2011. The plan’s basic aims are (A) to expand international business by •upgrading the infrastructure for overseas growth •strengthening the license business in North and Latin America •re-examining businesses in the Asian region; and (B) to review the profit structure of domestic businesses by •assessing the structure of the domestic product-sale business •consolidating and selecting (withdrawing from non-core business). Differences between the current revision of projected performance and the upwardly revised full-year projections announced in the second quarter financial summary (as of October 29, 2010) are as follows.

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) 72,800 11,900 10,300 6,200 67.52 (announced on October 29, 2010) Revised forecast (B) 74,500 12,900 11,700 7,000 77.26 Difference (B-A) 1,700 1,000 1,400 800 - Change (%) 2.3 8.4 13.6 12.9 - Reference: FY2009 actual results 73,875 9,289 8,249 4,373 44.72

5 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(Reference) Overseas Sales and Profit for the Past Nine-month Periods by Area (Millions of yen) Sales to customers Operating profit Nine months ended Dec. 2008 Dec. 2009 Change Dec. 2010 Change Dec. 2008 Dec. 2009 Change Dec. 2010 Change Areas % % % % North U.S.A. 3,775 3,427 (9.2) 3,780 10.3 406 526 29.5 815 54.9 America Latin Brazil 672 706 5.0 793 12.3 233 261 11.7 117 (55.1) America Hong Kong 1,360 2,429 78.5 3,076 26.6 192 225 16.9 435 93.3 Taiwan 594 495 (16.7) 503 1.7 (38) (7) - 15 - Asia South Korea 177 93 (47.2) 147 57.5 74 12 (82.8) 19 49.2 China 329 263 (20.0) 385 46.2 91 35 (61.4) 111 217.5 Asia subtotal 2,462 3,281 33.3 4,113 25.3 319 265 (16.9) 582 119.1 Europe Europe 7,147 8,006 12.0 10,882 35.9 2,268 2,591 14.2 3,876 49.6 Total 14,057 15,421 9.7 19,570 26.9 3,229 3,645 12.9 5,392 47.9

2. Other Information (1) Overview of changes in consolidated subsidiaries Not applicable.

(2) Overview of application of simplified accounting methods and special accounting methods Not applicable.

(3) Overview of changes in accounting principles, procedures, presentation methods, etc. Beginning with the first quarter of the current fiscal year, “Accounting Standard for Asset Retirement Obligations” (Accounting Standards Board of Japan (ASBJ) Statement No. 18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) have been applied. As a result, operating profit and ordinary profit have both decreased by 7 million yen while net profit before income taxes and other adjustments has decreased by 434 million yen. Application of these standards increased the account balance of asset retirement obligations by 257 million yen.

6 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

3. Quarterly Consolidated Financial Statements (1) Consolidated Balance Sheets (Millions of yen) Third quarter of FY2010 FY2009 Summary

(As of Dec. 31, 2010) (As of Mar. 31, 2010) Assets Current assets Cash and deposit 21,496 18,562 Trade notes and accounts receivable 13,391 11,019 Merchandise and finished goods 4,798 4,453 Work in process 67 46 Raw materials and supplies 250 229 Other 3,606 4,530 Allowance for doubtful accounts (169) (130) Total current assets 43,441 38,710 Fixed assets Tangible fixed assets 7,448 7,770 Buildings and structures, net 10,986 11,307 Land 1,191 1,275 Other, net 19,626 20,353 Total tangible fixed assets 373 493 Intangible fixed assets Investments and other assets Deferred tax assets 6,407 6,646 Other 19,771 20,691 Allowance for doubtful accounts (1,044) (1,204) Total investments and other assets 25,135 26,133 Total fixed assets 45,135 46,980 Deferred assets 105 74 Total assets 88,682 85,765 Liabilities Current liabilities Trade notes and accounts payable 9,216 7,732 Short-term borrowings 18,251 15,954 Accrued income taxes 1,235 1,136 Allowance for bonuses 91 365 Reserve for adjustment of returned goods 90 118 Other 9,094 6,919 Total current liabilities 37,979 32,226 Long-term liabilities Corporate bonds 5,765 6,225 Long-term borrowings 5,999 7,153 Reserve for retirement benefits for employees 6,859 6,963 Reserve for retirement benefits for directors 425 411 Other 1,555 1,191 Total long-term liabilities 20,604 21,945 Total liabilities 58,584 54,171

7 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(Millions of yen) Third quarter of FY2010 FY2009 Summary

(As of Dec. 31, 2010) (As of Mar. 31, 2010) Net assets Shareholders’ equity Capital 10,000 14,999 Capital surplus 9,400 8,732 Retained earnings 18,253 13,478 Treasury stock (837) (954) Total shareholder’s equity 36,815 36,255 Valuation and translation adjustments Net unrealized gain (loss) on other securities (1,019) (563) Deferred hedge gain (loss) (22) (45) Foreign currency translation adjustments (5,709) (4,083) Total valuation and translation adjustments (6,751) (4,692) Minority interests 33 30 Total net assets 30,097 31,594 Total liabilities and net assets 88,682 85,765

8 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(2) Consolidated Income Statements (For the Nine-month Period) (Millions of yen) First nine months of FY2009 First nine months of FY2010

(Apr. 1, 2009 – Dec. 31, 2009) (Apr. 1, 2010 – Dec. 31, 2010) Sales 54,285 57,547 Cost of sales 24,821 23,135 Gross profit 29,464 34,411 Provision of reserve for adjustment of returned goods 40 - Reversal from reserve for adjustment of returned goods -28 Net gross profit on sales 29,424 34,439 Selling, general and administrative expenses 23,313 23,084 Operating profit 6,110 11,355 Non-operating profit Interest income 196 221 Other 262 223 Total non-operating profit 458 445 Non-operating expenses Interest expense 469 440 Tax and public charges 356 505 Foreign exchange loss 222 365 Other 184 231 Total non-operating expenses 1,232 1,543 Ordinary profit 5,336 10,256 Extraordinary gains Gain on sales of fixed assets 218 Gain on sales of investment securities 65 Reversal of allowance for doubtful accounts - 270 Total extraordinary gains 8 293 Extraordinary losses Impairment loss - 244 Valuation loss on investment securities 276 98 Restructuring loss 373 - Loss on adjustment for changes of accounting standard for - 426 asset retirement obligations Provision of allowance for doubtful accounts - 222 Other 52 46 Total extraordinary losses 701 1,038 Net profit before income taxes and other adjustments 4,642 9,511 Income taxes - current 1,575 1,830 Income taxes - deferred 158 990 Total income taxes 1,733 2,820 Income before minority interests - 6,691 Minority interests in income of consolidated subsidiaries 911 Net profit 2,899 6,679

9 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(3) Consolidated Cash Flow Statements (Millions of yen) First nine months of FY2009 First nine months of FY2010

(Apr. 1, 2009 – Dec. 31, 2009) (Apr. 1, 2010 – Dec. 31, 2010) Cash flows from operating activities Net profit before income taxes and other adjustments 4,642 9,511 Depreciation 1,006 988 Amortization of long-term prepaid expenses 67 52 Increase (decrease) in allowance for doubtful accounts 109 (82) Increase (decrease) in reserve for bonuses (276) (273) Interest and dividend income (227) (268) Interest expense 469 440 Decrease (increase) in accounts receivable (3,908) (3,088) Decrease (increase) in inventories (1,187) (463) Decrease (increase) in other assets 558 (20) Increase (decrease) in accounts payable 3,571 1,688 Increase (decrease) in consumption tax payable 43 3 Increase (decrease) in other liabilities 1,284 1,111 Other 699 847 Subtotal 6,853 10,446 Interests and dividends received 264 302 Interests paid (384) (405) Income taxes paid (1,269) (1,679) Cash flows from operating activities 5,463 8,664 Cash flows from investing activities Payments for time deposits (293) (1,753) Withdrawal of time deposits 261 663 Payments for purchase of tangible fixed assets (1,367) (769) Payments for purchase of investment securities (99) (760) Proceeds from sale of investment securities 59 65 Collection of loans receivable (68) - Collection of guarantees 327 511 Other, net (100) 228 Cash flows from investing activities (1,280) (1,813) Cash flows from financing activities Increase in short-term borrowings 43 - Decrease in short-term borrowings (689) (2,302) Increase in long-term borrowings 2,200 5,318 Decrease in long-term borrowings (2,651) (1,873) Proceeds from issuance of corporate bonds 2,456 2,450 Payment for redemption of corporate bonds (931) (1,251) Dividends paid (1,361) (1,892) Payment for purchase of treasury stock - (4,340) Other, net (177) (70) Cash flows from financing activities (1,110) (3,961) Effect of exchange rate changes on cash and cash equivalents 12 (956) Increase (decrease) in cash and cash equivalents 3,083 1,932 Cash and cash equivalents at beginning of period 13,599 18,073 Cash and cash equivalents at end of period 16,683 20,006

10 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

(4) Going Concern Assumption Not applicable.

(5) Segment Information, etc. Business segment information First nine months of FY2009 (Apr. 1, 2009 – Dec. 31, 2009) (Millions of yen) Social Eliminations Theme parks Other Total Consolidated communication gifts and corporate Sales (1) Customers 48,709 3,877 1,698 54,285 - 54,285 (2) Inter-segment 534 930 105 1,570 ( 1,570) - Total 49,244 4,807 1,804 55,855 ( 1,570) 54,285 Operating profit (loss) 7,338 (616) (273) 6,448 ( 338) 6,110 Notes: 1. Method of business classification Business classification is based on categories adopted for purpose of internal management. 2. Main businesses belonging to each category Segment Sub-segment Major businesses Social communication gift Stationeries, kitchen and tableware, bathroom goods, interior products decorative goods, sundries, portable goods, apparel goods Social communication Greeting cards Birthday cards, Christmas cards gifts Publications Gift books, poetries, general publication, magazines Movies, videos Video software sales Copyright management Management of licenses Theme park services Attraction facility operation, goods sales, restaurants Theme parks Tie-up commissions Commissions from collaborating companies Dramas Planning and play of musicals and others Restaurants Restaurants, Kentucky Fried Chickens Real estate leasing Real estate rent leasing Other Production and rental of robots Production and rental of robots Film production and distribution Production associations

11 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

Geographical segment information First nine months of FY2009 (Apr. 1, 2009 – Dec. 31, 2009) (Millions of yen) Eliminations Japan Europe Other areas Total Consolidated and corporate Sales (1) Customers 38,863 8,006 7,415 54,285 - 54,285 (2) Inter-segment 4,545 21 1,202 5,770 ( 5,770) - Total 43,409 8,0278,618 60,055 ( 5,770) 54,285 Operating profit 2,788 2,591 1,054 6,433 ( 323) 6,110 Notes: 1. Countries and/or regions are classified by geographical proximity. 2. Major areas included in each segment except for Japan are as follows: Europe: Italy, France, Spain, Germany, etc. Other areas: U.S.A., Hong Kong, Taiwan, South Korea, Brazil, China

Overseas sales First nine months of FY2009 (Apr. 1, 2009 – Dec. 31, 2009) (Millions of yen) Europe Other areas Total I Overseas sales 8,028 8,616 16,644 II Consolidated sales - - 54,285 III Percentage of overseas sales over consolidated sales (%) 14.8 15.9 30.7 Notes: 1. Regions are classified by geographical proximity. 2. Major areas included in each segment are as follows: Europe: Italy, France, Spain, Germany, etc. Other areas: U.S.A., Hong Kong, Taiwan, South Korea, Thailand, Brazil, China 3. Overseas sales is a sum of exports of the Company and its domestic consolidated subsidiaries and sales of consolidated subsidiaries based in the U.S.A., Hong Kong, Taiwan, South Korea, Germany, Brazil and China (excluding internal transactions).

Segment Information (Additional information) Starting in the first quarter of the current fiscal year, the “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (Accounting Standards Board of Japan (ASBJ) Statement No. 17, March 27, 2009) and “Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No. 20, March 21, 2008) have been applied.

1. Overview of reportable segment Segments used for financial reporting are the Sanrio Group’s constituent units for which separate financial information is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resources and evaluating performance. The Group is engaged primarily in the social communication gifts business, which involves the planning and sale of social communication gift products and character merchandise licensing operations, and the theme parks business. The Company and its domestic consolidated subsidiaries conduct business operations in Japan and there overseas consolidated subsidiaries in each region conduct business operations in Europe (mainly Italy, France, Spain and Germany), North America (mainly the United States), Latin America (mainly Brazil) and Asia (mainly Hong Kong, Taiwan, South Korea and China). The Company and each consolidated subsidiary are independent operating units that establish comprehensive strategies concerning their products and other aspects of operations and conduct business operations based on those strategies. As a result, there are five reportable segments based on the structure of sales activities by geographical segments: Japan, Europe, North America, Latin America and Asia.

12 Sanrio Company, Ltd. (8136) Financial Results for the Third Quarter of FY2010

2. Information related to sales and profit or loss for each reportable segment First nine months of FY2010 (Apr. 1, 2010 – Dec. 31, 2010) (Millions of yen) Reportable segment Amounts shown on quarterly Adjustment North Latin consolidated Japan Europe Asia Total *1 America America income statements *2 Sales Customers 37,976 10,882 3,780 793 4,113 57,547 - 57,547 (Royalty income) ( 6,244) ( 8,305) ( 2,583) ( 712) ( 1,393) ( 19,239) ( -) ( 19,239) Inter-segment 6,687 14 364 - 800 7,866 (7,866) - (Royalty income) ( 6,576) ( 12) ( 32) ( -) ( 26) ( 6,647) ( (6,647)) ( -) Total 44,664 10,897 4,145 793 4,913 65,414 (7,866) 57,547 Segment profit 6,390 3,876 815 117 582 11,782 (427) 11,355 Notes: 1. The 427 million yen adjustment to segment profit is the sum of inter-segment transactions and corporate expenses that are mostly administrative expenses that cannot be assigned to any particular segment. 2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated income statements.

(Supplementary information)

Business segment sales and operating profit (loss) First nine months of FY2010 (Apr. 1, 2010 – Dec. 31, 2010) (Millions of yen) Social Eliminations and communication Theme parks Other Total Consolidated corporate gifts Sales Customers 51,623 4,154 1,769 57,547 - 57,547 (Royalty income) ( 19,026) ( 213) ( -) ( 19,239) ( -) ( 19,239) Inter-segment 539 839 103 1,481 (1,481) - (Royalty income) ( 5) ( 187) ( -) ( 192) ( (192)) ( -) Total 52,162 4,994 1,872 59,029 (1,481) 57,547 Operating profit (loss) 12,121 (255) (97) 11,769 (414) 11,355 Note: The social communication gifts segment includes the planning and sale of social communication gift products, character merchandise licensing operations and other activities. The theme parks segment includes theme park services, tie-up commissions and other activities. The others segment includes restaurant operations, the production and rental of robots, and other activities.

(6) Significant Changes in Shareholders’ Equity On July 6, 2010, the Company acted on a decision taken at the Annual General Meeting of Shareholders of June 23, 2010, to reduce capital and additional paid-in capital, cutting the former by 4,999 million yen and the latter by 2,500 million yen, and transferring the sum to the category of “other capital surplus.” As a result, capital fell 4,999 million yen while capital surplus rose by the same amount. Moreover, on July 30, 2010, the Company purchased 400,000 shares of Class B preferred stock, and retired them in their entirety on October 4, 2010. As a result, capital surplus fell by 4,339 million yen. Consequently, in the consolidated accounts at the end of the third quarter, capital amounted to 10,000 million yen and capital surplus to 9,400 million yen.

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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