May 15, 2015

Summary of Financial Results for the Fiscal Year Ended March 31, 2015 (FY2014) [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 Annual General Meeting of Shareholders: June 25, 2015 Scheduled date of filing of Annual Securities Report: June 26, 2015 Starting date of dividend payment: June 9, 2015 Preparation of supplementary materials for financial results: Yes Holding of financial results meeting: Yes (for institutional investors and analysts) Note: The original disclosure in Japanese was released on May 15, 2015 at 16:00 (GMT +9). (All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for FY2014 (April 1, 2014 – March 31, 2015) (1) Consolidated results of operations (Percentages for sales and profits represent year-on-year changes) Sales Operating Profit Ordinary Profit Net Profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % FY2014 74,562 (3.2) 17,468 (16.9) 18,525 (8.2) 12,804 0.0 FY2013 77,009 3.7 21,019 4.1 20,180 2.7 12,802 2.1 Note: Comprehensive income (millions of yen) FY2014: 16,163 (down 21.2%) FY2013: 20,513 (up 22.9%) Net Profit per Fully-Diluted Net Return on Equity Return on Assets Operating Profit

Share Profit per Share (ROE) (ROA) to Sales Yen Yen % % % FY2014 146.53 - 20.1 15.5 23.4 FY2013 145.24 145.20 23.2 18.8 27.3 Reference: Equity in earnings of unconsolidated subsidiaries (millions of yen) FY2014: - FY2013: - (2) Consolidated financial position Total Assets Net Assets Equity Ratio Net Assets per Share Millions of yen Millions of yen % Yen As of Mar. 31, 2015 122,124 66,269 54.0 757.07 As of Mar. 31, 2014 117,585 61,883 52.4 699.32 Reference: Shareholders’ equity (millions of yen) As of Mar. 31, 2015: 65,981 As of Mar. 31, 2014: 61,648 (3) Consolidated cash flow Cash Flows from Cash Flows from Cash Flows from Cash and Cash Equivalents

Operating Activities Investing Activities Financing Activities at End of Period Millions of yen Millions of yen Millions of yen Millions of yen FY2014 14,438 (7,818) (11,921) 37,670 FY2013 17,448 (8,651) (5,417) 41,671 2. Dividends Dividend per Share Dividend Dividend on Total Payout Ratio Equity 1Q-end 2Q-end 3Q-end Year-end Total Dividends (Consolidated) (Consolidated) Yen Yen Yen Yen Yen Millions of yen % % FY2013 - 30.00 - 50.00 80.00 7,052 55.1 12.8 FY2014 - 40.00 - 40.00 80.00 6,972 54.6 11.0 FY2015 (forecast) - 40.00 - 40.00 80.00 60.6 Note: The dividend figures for Year-end and Total of FY2013 include a 20.00 yen commemorative dividend for the 40th anniversary of . 3. Consolidated Forecasts for FY2015 (April 1, 2015 – March 31, 2016) (Percentages represent year-on-year changes) Profit attributable to Sales Operating Profit Ordinary Profit Net Profit per Share owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen First half 35,600 0.2 7,400 (12.6) 7,400 (18.0) 5,000 (17.3) 57.37 Full year 75,400 1.1 17,000 (2.7) 17,100 (7.7) 11,500 (10.2) 131.95 * Notes (1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None Newly added: - Excluded: -

(2) 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

(3) Number of outstanding shares (common stock) 1) Number of outstanding shares at the end of period (including treasury stock) As of Mar. 31, 2015: 89,065,301 shares As of Mar. 31, 2014: 89,065,301 shares 2) Number of shares of treasury stock at the end of period As of Mar. 31, 2015: 1,911,534 shares As of Mar. 31, 2014: 911,287 shares 3) Average number of shares outstanding during the period FY2014: 87,384,730 shares FY2013: 88,153,005 shares

Reference: Unconsolidated Financial Results 1. Unconsolidated Financial Results for FY2014 (April 1, 2014– March 31, 2015) (1) Unconsolidated 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 % FY2014 50,976 (2.1) 10,232 (17.4) 10,955 (40.3) 7,739 (45.0) FY2013 52,044 2.7 12,386 7.6 18,363 68.1 14,074 127.4

Net Profit per Share Fully-Diluted Net Profit per Share Yen Yen FY2014 88.57 - FY2013 159.66 159.63 (2) Unconsolidated financial position Total Assets Net Assets Equity Ratio Net Assets per Share Millions of yen Millions of yen % Yen As of Mar. 31, 2015 71,741 31,137 43.2 355.37 As of Mar. 31, 2014 75,444 34,747 45.8 392.27 Reference: Shareholders’ equity (millions of yen) As of Mar. 31, 2015: 30,971 As of Mar. 31, 2014: 34,579

2. Unconsolidated Forecasts for FY2015 (April 1, 2015– March 31, 2016) (Percentages represent year-on-year changes) Sales Ordinary Profit Net Profit Net Profit per Share Millions of yen % Millions of yen % Millions of yen % Yen First half 25,000 1.2 4,700 (11.2) 3,100 (14.2) 35.57 Full year 53,000 4.0 11,000 0.4 7,100 (8.3) 81.47

Note 1: Information regarding the implementation of audit procedures The current financial statements in this summary are exempted from audit procedures based on the Financial Instru ments and Exchange Act. It is under the audit procedure process at the time of disclosure of this report.

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. Analysis of Business Results and Financial Position, (1) Analysis of Results of Operations” on page 2 of the attachments for forecast assumptions and notes of caution for usage. Sanrio Company, Ltd. (8136) Financial Results for FY2014

Contents of Attachments

1. Analysis of Business Results and Financial Position 2 (1) Analysis of Results of Operations 2 (2) Analysis of Financial Position 8 (3) Basic Policy Regarding Profit Distribution and Dividends for FY2014 and FY2015 10

2. Corporate Structure 11

3. Management Policy 12 (1) Basic Management Policy 12 (2) Target Performance Indicators and Medium to Long-Term Management Strategy 12 (3) Management Issues and Measures to be Tackled 12

4. Basic Approach for the Selection of Accounting Standards 13

5. Consolidated Financial Statements 14 (1) Consolidated Balance Sheets 14 (2) Consolidated Income Statements and Consolidated Comprehensive Income Statements 16 Consolidated Income Statements 16 Consolidated Comprehensive Income Statements 18 (3) Consolidated Statements of Changes in Shareholders’ Equity 19 (4) Consolidated Cash Flow Statements 21 (5) Going Concern Assumption 23 (6) Changes in Accounting Policies 23 (7) Notes to Consolidated Financial Statements 23 Relating to consolidated balance sheets 23 Relating to consolidated income statements 24 Relating to consolidated statements of changes in shareholders’ equity 25 Relating to consolidated cash flow statements 26 Segment Information 27 Per Share Information 30 Subsequent Events 30

6. Other Information 31 (1) Change in Directors 31 (2) Others 31

1 Sanrio Company, Ltd. (8136) Financial Results for FY2014

1. Analysis of Business Results and Financial Position (1) Analysis of Results of Operations

1) Review of Operations for FY2014 (100 millions of yen) Vs. Plan Y-O-Y FY2014 Increase/ FY2013 Increase/ Results *Final plan Change % Change % decrease Results decrease Sales 745 742 3 0.5% 770 (24) (3.2)% Gross profit 505 510 (4) (0.9)% 533 (27) (5.2)% Selling, general & administrative 330 333 (2) (0.6)% 323 7 2.3% expenses Operating profit 174 177 (2) (1.3)% 210 (35) (16.9)% Non-operating profit or expenses 10 13 (2) (18.7)% (8) 18 - Ordinary profit 185 190 (4) (2.5)% 201 (16) (8.2)% Extraordinary gains or losses 8 6 2 46.0% 3 5 166.8% Net profit before income taxes and 194 196 (1) (1.0)% 205 (11) (5.4)% other adjustments Income taxes-current and income 65 64 1 2.5% 76 (11) (14.5)% taxes-deferred Net profit 128 132 (3) (3.0)% 128 0 0.0% Gross margin 67.8% 68.7% (0.9)% - 69.3% (1.5)% - Operating margin 23.4% 23.9% (0.5)% - 27.3% (3.9)% - Ordinary margin 24.8% 25.6% (0.8)% - 26.2% (1.4)% - *Since FY2014 has seen multiple forecast revisions, the table above shows comparisons with the final plan. During the fiscal year under review (consolidated subsidiaries overseas: January 1 to December 31, 2014; consolidated subsidiaries in Japan: April 1, 2014 to March 31, 2015), the global economy performed as follows. The U.S. economy sustained a moderate growth trend after the tapering of quantitative easing in January 2014 while the Eurozone remained at a standstill due to continuing concern over the economies of the PIIGS (Portugal, Italy, Ireland, Greece, and Spain). Growth in the Chinese economy fell below 7.5% for the first time, suggesting that the era of constant growth is coming to an end. In Japan, consumer spending cooled due to a consumption tax hike in April 2014 combined with rising import prices, especially for gasoline, in the first half caused by the yen’s sudden depreciation. However, a consumption boom accompanying an increase in the number of tourists visiting Japan from China and other countries after the lifting of visa restrictions in January underpinned strong sales at department stores and volume retailers in the Tokyo metropolis and some tourist areas. Amid these conditions, the Sanrio Group has expanded in the youth market (those in and around their twenties) in addition to the traditional Sanrio fans through characters such as Hello Kitty, celebrating its 40th anniversary, all-character designs, which incorporated main characters into a single design, and , Kirimi-chan, and Show by Rock!!, which arose out of social networks and other new markets. However, the strong performance in Asia has been outweighed by weak product license sales in Europe and North America. As a result, sales fell 3.2% year-on-year to 74.5 billion yen in the current fiscal year. Operating profit fell 16.9% year-on-year to 17.4 billion yen due to a decrease in sales from the licensing business in Europe and North America and an increase in cost-of-sales ratio from the weaker yen and change in sales composition in Japan. Operating profit fell 8.2% year-on-year to 18.5 billion yen because foreign exchange gain due to the yen’s sudden depreciation after September 2014 amounted to 0.6 billion yen. Net profit before income taxes and other adjustments fell 5.4% year-on-year to 19.4 billion yen. Net profit was nearly unchanged from the previous fiscal year to 12.8 billion yen due to a rise in the profit ratio in the Asian regions with low effective tax rates. Furthermore, since the fiscal year-end for all overseas consolidated subsidiaries is December, the fiscal year under review for these subsidiaries covers the period from January to December 2014.

2 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Reportable Segment (100 millions of yen) Sales Segment profit (operating profit) Increase/ Increase/ FY2013 FY2014 Change % FY2013 FY2014 Change % decrease decrease Product sales/others 374 370 (3) (1.0)% Japan Royalties 86 98 11 13.4% 128 104 (24) (18.8)% Total 460 468 7 1.7% Product sales/others 2 1 (0) (34.0)% Europe Royalties 96 84 (11) (12.4)% 31 26 (5) (18.0)% Total 98 85 (12) (12.9)% Product sales/others 17 16 (1) (8.4)% North Royalties 101 73 (27) (27.1)% 39 18 (21) (54.2)% America Total 118 89 (28) (24.3)% Product sales/others 0 0 (0) (58.1)% Latin Royalties 17 18 1 9.5% 5 5 (0) (1.5)% America Total 17 18 1 8.8% Product sales/others 25 22 (2) (11.3)% Asia Royalties 48 59 10 22.1% 13 28 14 112.8% Total 74 82 7 10.5% Adjustment - - - - (8) (7) 1 - Product sales/others 420 411 (9) (2.2)% Consolidated Royalties 349 334 (15) (4.4)% 210 174 (35) (16.9)% Total 770 745 (24) (3.2)% 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 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. i. Japan: Sales rose 1.7% year-on-year to 46.8 billion yen and operating profit fell 18.8% to 10.4 billion yen In Japan, declining master license income from the highly profitable overseas subsidiaries, especially in North America, led to a large fall in profits. Meanwhile, product and corporate promotion license income for convenience stores performed well, resulting in increased sales. In the domestic product sales business, the Group faced challenges in the first half with an overall trend of increasingly cautious consumer behavior in the difficult environment following the consumption tax hike, a decline in the number of customers visiting family-oriented stores in the unseasonable weather, and a fall in spending per customer. On the positive side, the number of overseas tourists visiting stores, especially in the city centers, has risen and new characters Kirimi-chan and Gudetama have proved popular with a new segment focused on youth. Same-store sales (based on directly owned stores and directly operated shops within department stores) performed at 93.2% of the previous year’s level. Regarding initiatives for inbound tourists, whose numbers have grown due a full consumption tax exemption from October 2014 and visa deregulation for Chinese visitors from January 2015, we are proceeding with foreign tourist policies, including refurbishing duty-free stores starting with the flagship Sanrioworld Ginza Store, product tag displays in multiple languages and opening stores in tourist areas and major city centers. In the domestic licensing business, sales of the new character Gudetama grew and contributed to sales and profits for apparel, cell phone accessories, and character cafés, and especially as stamps for free cell phone chat services. Moreover, in November 2014, the commemorative design for Hello Kitty’s 40th anniversary and the My Melody apparel and accessories in collaboration with apparel brands proved popular. The adoption of Mr. Men by a major SPA (Specialty store retailer of Private label Apparel) has also contributed to sales and profits. The character cafés feature My Melody, Little Twin Stars, both of which celebrate the 40th anniversary this year, Mr. Men and Little Miss, and Pom Purin. By featuring one popular character after another, the cafés are proving popular and contributing to sales while also expanding the characters’ world and adding to licensee acquisition and product sales.

3 Sanrio Company, Ltd. (8136) Financial Results for FY2014

As a result, sales and profits rose year-on-year in the domestic licensing business. In the theme parks business, at Harmony Land in Oita prefecture, visitor numbers declined due to the consumption tax hike of April 2014. Set against this, the number of visitors arriving due to the summer pool greatly exceeded that of the previous year, and so first-half sales and profits remained at around the level of the previous first half. In the second half, construction to allow the introduction of an all-weather parade at times of rain led to partial closure of facilities and suspension of the parade, and unseasonable weather including a cold spell led to a fall in visitor numbers, causing total numbers for the entire fiscal year to fall by 21,000 to 392,000. Operating profit fell as it was unable to cover the sales shortfall accompanying the reduction in visitor numbers. For the next fiscal year, we are planning for a profit in the year-end figures with a rise in visitor numbers due to the opening of the East Kyushu Expressway, enabling expansion in the direction of the Miyazaki and Kitakyushu areas, in March 2015 combined with the promotion of the attraction of all-weather parade facilities, which opened after refurbishment in the same month. At in Tokyo’s Tama City, we undertook measures including reducing the entry fee to accommodate the consumption tax hike of April 2014, discarding the entry fee for junior and senior high school students (aged from 12 to 17 years inclusively) and bringing in a single fee for those aged from 3 to 17 years, and starting tax-free sales as an initiative for foreign tourists in addition to opening more events. The result of these measures compensated for the first-half fall in visitor numbers brought about by limitations on discount tickets and corporate welfare program discounts, leading to a year-on-year rise of 48,000, or 6.1%, to a total of 841,000. Product and restaurant sales compensated for the decline in ticket prices but profits fell due to increased advertising and HR costs involved in the summer initiatives. As a result, overall sales for domestic theme parks rose 2.8% year-on-year to 6.1 billion yen and operating loss increased 0.1 billion yen to 0.7 billion yen. In the next fiscal year we are aiming to increase both sales and profits through higher royalty income from the grand opening in Anji province, China, and provisions for tourists visiting from overseas. Regarding other business, sales and profits fell due to factors including sluggish sales among special-order products for other companies’ contents, the robot rental business, and the restaurant segment as well as advertising costs for Fantasy animated movie released in November. ii. Europe: Sales fell 12.9% year-on-year to 8.5 billion yen and operating profit fell 18.0% to 2.6 billion yen In Europe the severe consumer environment persisted, leading to a fall in sales and profits. A rise in sales in the Near and Middle East and other regions was unable to compensate for the slump in the Western European countries, led by the mainstay UK, and sales fell overall. We are moving forward with reorganizing operations for major licensees under a dedicated team while aiming to increase sales through the penetration of marketing activities via collaboration between Hello Kitty and famous soccer club mascots and staging music artist concerts. iii. North America: Sales fell 24.3% year-on-year to 8.9 billion yen and operating profit fell 54.2% to 1.8 billion yen In the United States, sales and profits fell due to the impact of a cold wave at the start of the year and a reduction in the share of shelf space for display of the Group’s products, which happened due to movie distributors’ advertising strategies to guarantee space among major volume retailers for their entertainment character products. The Sanrio Group is aiming to expand merchandizing (corporate promotion and service industry) licenses for cafés and traveling shows in addition to product licenses and the hosting of events put into the spotlight by the 40th anniversary event for Hello Kitty celebrated in November 2014 and for My Melody and Little Twin Stars, which celebrate their 40th anniversary this year. For the future, we are aiming to develop new sales channels and quickly bottom out through such means as product sales at events and internet shopping.

4 Sanrio Company, Ltd. (8136) Financial Results for FY2014

iv. Latin America: Sales rose 8.8% year-on-year to 1.8 billion yen and operating profit fell 1.5% to 0.5 billion yen Sales rose as a strong performance in Mexico and a Brazilian rally for license income from shoes, apparel, and department distributors compensated for lower sales in Argentina, where licensees cancelled contracts following restrictions on overseas remittance imposed as a government measure to deal with nonperforming loans. Operating profit fell, despite a revision of expenses that included closing unprofitable cafés, as selling, general, and administrative expenses rose more than estimated due to the inclusion of promotional costs for Hello Kitty’s 40th anniversary in the accounts. v. Asia: Sales rose 10.5% year-on-year to 8.2 billion yen and operating profit rose 112.8% to 2.8 billion yen In Hong Kong, consumption was sluggish due to pro-democracy demonstrations in November 2014 and other factors but corporate promotions including credit cards with financial institutions in Thailand, Hong Kong, and Malaysia; decorations for entertainment event facilities such as Christmas illuminations; and the successive introduction of advertising licenses including character cafés contributed to a rise in sales and profits. In South Korea, sales among major volume sellers performed poorly after the passage of a law requiring them to close on two Sundays each month, and product license sales for categories including shoes, foodstuffs, toys, and household appliances were weak due to the creation of private brands. Licenses for Hello Kitty rooms in hotels and for cafés and restaurants also performed sluggishly due to self-restraint in the aftermath of a major ferry disaster in April 2014. However, the effect of the weak yen led to a rise in sales and a slight fall in profits. In Taiwan, novelties for convenience stores and promotional events for Hello Kitty 40th anniversary exhibitions continued to perform well, as did campaigns for drug stores. By category, license sales for apparel struggled but those for household supplies and toys grew, raising sales and profits overall. In Taiwan as in Japan, the increase in the number of overseas tourists expanded the tourism, leisure, and food service markets. Licenses for cafés and airport souvenir shops sold well and contributed to sales and profits. Moreover, the new Gudetama character proved very popular, and was adopted at seven licensee companies, including convenience stores, thus contributing to sales and profits. In China, licensing income from master licensee KTL, whose licenses for shoes tripled in number, rose steadily in all categories, including accessories, household supplies, and foodstuffs. Moreover, character cafés run by the Group’s local subsidiary and product sales transferred from the Hong Kong subsidiary from the current fiscal year performed well, leading to a rise in sales and profits despite increased selling, general, and administrative expenses.

5 Sanrio Company, Ltd. (8136) Financial Results for FY2014

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 Europe/Germany (EUR) 54,389 1,101 55,490 16,384 Year-on-year change (%) (21.6) (42.4) (22.2) (30.3) Britain (GBP) 5,237 58 5,294 1,574 Year-on-year change (%) 20.9 - 22.2 119.5 North America (USD) 69,500 15,337 84,837 17,176 Year-on-year change (%) (33.4) (16.6) (30.9) (58.2) Brazil (BRL) 41,935 91 42,026 11,428 Year-on-year change (%) 8.4 (76.7) 7.6 (1.4) Chile (Peso) - 17,408 17,408 8,201 Year-on-year change (%) - - (25.0) (62.7) Hong Kong (HKD) 127,555 252,813 380,368 72,870 Year-on-year change (%) 10.2 (18.5) (10.7) 2,588.8 Taiwan (NTD) 404,732 45,062 449,793 140,871 Year-on-year change (%) 11.9 30.2 13.5 32.4 South Korea (KRW) 9,374,211 1,242,718 10,616,929 3,760,548 Year-on-year change (%) (11.8) 155.5 (4.5) (14.2) Shanghai (CNY) 109,965 68,493 178,458 54,307 Year-on-year change (%) 29.4 42,775.1 109.6 56.6 Note: The table shows figures before category adjustment for the handling of other regions included in each subsidiary. There is no connection with the figures and currency conversions for previously mentioned regional segments and exchanges.

Reference: Overseas Sales and Profits for the Past Three Years by Area (Millions of yen) Sales to customers Operating profit

FY2012 FY2013 Change FY2014 Change FY2012 FY2013 Change FY2014 Change Areas (%) (%) (%) (%) North U.S.A. 9,852 11,883 20.6 8,994 (24.3) 3,495 3,988 14.1 1,827 (54.2) America Latin Brazil/Chile 1,409 1,731 22.8 1,884 8.8 435 525 20.8 518 (1.5) America Hong Kong 3,773 3,927 4.1 4,139 5.4 698 33 (95.1) 999 2,846.5 Taiwan 815 1,236 51.6 1,473 19.2 172 348 102.1 494 41.7 Asia South Korea 575 985 71.1 1,064 8.0 218 390 78.8 380 (2.6) China 943 1,304 38.2 1,560 19.6 342 548 60.0 937 70.9 Subtotal 6,108 7,453 22.0 8,237 10.5 1,432 1,321 (7.7) 2,812 112.8 Germany 9,486 9,213 (2.9) 7,795 (15.4) 3,228 3,041 (5.8) 2,307 (24.1) Europe Britain 699 640 (8.4) 787 23.0 253 150 (40.7) 308 105.1 Subtotal 10,186 9,853 (3.3) 8,583 (12.9) 3,482 3,191 (8.4) 2,616 (18.0) Total 27,557 30,922 12.2 27,699 (10.4) 8,845 9,027 2.1 7,773 (13.9)

6 Sanrio Company, Ltd. (8136) Financial Results for FY2014

2) Outlook for FY2015 (100 millions of yen) FY2014 FY2015 Increase/ Change % Results Forecasts decrease Sales 745 754 8 1.1% Gross profit 505 520 14 2.8% Selling, general & administrative expenses 330 350 19 5.8% Operating profit 174 170 (4) (2.7)% Ordinary profit 185 171 (14) (7.7)% Extraordinary gains or losses 8 - (8) - Net profit before income taxes and other adjustments 194 171 (23) (11.9)% Income taxes-current and -deferred 65 56 (9) (14.6)% Net profit 128 115 (13) (10.2)% Gross margin 67.8% 69.0% 1.2% - * Key assumptions for the next year’s outlook Exchange rates: 118.00 yen/USD 132.00 yen/EUR Directly owned same store sales in Japan compared to the previous fiscal year: 103%

Regarding the global economy in the coming fiscal year, the uncertainty experienced in FY2014 is expected to persist, especially in Europe. Regarding this situation, we anticipate increased sales for Japan’s domestic business from a recovery in corporate earnings alongside higher consumer spending due to a rise in base salaries and the continuation of the FY2014 trend for the number of foreign tourists visiting Japan to increase. However, for business overseas there are concerns that sales and earnings from European and North American business may be edging lower. Due to the above conditions, sales are expected to rose 1.1% year-on-year to 75.4 billion yen; operating profit to fall 2.7% year-on-year to 17 billion yen due to the spread of advertising rights licenses in Europe and the United States and a rise in selling, general, and administrative expenses including those for strengthening the sales structure; and net profits to fall 10.2% year-on-year to 11.5 billion yen as we do not expect foreign exchange gains or extraordinary gains in FY2015. A breakdown of the management policies for each business is as follows. i. Overseas business In the United States and Europe, we have transitioned from the stage of cultivating the market through Hello Kitty merchandizing rights (product) licenses to the parallel establishment of advertising rights licenses (cafés, karaoke, and other space designs; corporate advertising; and novelty goods) for multiple characters in Japanese and Asian styles and franchise development through agencies. Moreover, in Europe we are transitioning to a system of attaching dedicated teams for major licensees and undertaking joint development with licensees concerning marketing, sales, and design. We anticipate halting the persistent fall in sales by the second half of 2015. Note: Advertising licences include wrapping for sightseeing and regular-route buses, cafés, restaurants, novelty goods, credit cards, and corporate commercials. ii. Domestic licensing business In addition to My Melody and Little Twin Stars, both of which celebrate their 40th anniversary this year, we aim to cultivate new markets outside the traditional customer segment and increase sales and profits through the efficacy of new characters including Kirimi-chan, Gudetama, and SHOW BY ROCK!! as well as Mr. Men and Little Miss. iii. Domestic product sales business From the current fiscal year we are opening stores in major city centers and tourist regions to support tax-free sales for foreign tourists, and aim to expand in the future with the inclusion of product development. Concerning Internet sales, we aim to expand through synergies that aim to link stores together.

7 Sanrio Company, Ltd. (8136) Financial Results for FY2014 iv. Theme parks We aim to increase visitor numbers through such means as the “student pass” introduced in the second half of the fiscal year under review, which has had a big effect among junior-high and high-school students, and enhance distribution of event information though social networking. Moreover, from June we will demonstrate the appeal of indoor theaters functioning in such ways as event halls for entertainers’ fan meetings, costume play, dance, and celebrities, starting with a male actors’ show. In Harmony Land, Oita Prefecture, the indoor roof facility was proving popular ahead of the opening of the East Kyushu Expressway in March 2015. With this facility, we aim to make a profit on the year-end balance sheet by equalizing visitor numbers with regard to attractions that are little affected by rain and other forms of inclement weather and by increasing visitor numbers from the direction of Miyazaki and Kitakyushu. v. Other business In the dinosaur robot sales and rental business, we aim to increase sales by exploiting the benefits of the weak yen for acquiring items overseas while investing to guarantee secure sales outside the area of special orders. Moreover, in the restaurant segment, we aim to review selling, general, and administrative expenses through reviewing rent and HR costs and improve profits by cutting expenses while investigating the causes of loss.

(2) Analysis of Financial Position

1) FY2014 Financial Position (100 millions of yen) As of Mar. 31, 2014 As of Mar. 31, 2015 Increase/decrease As of Sep. 30, 2014 Assets 1,175 1,221 45 1,173 Liabilities 557 558 1 585 (Interest-bearing debt) 258 250 (7) 283 Net assets 618 662 43 587 Equity ratio 52.4% 54.0% 1.6pt 49.9% * Interest-bearing debt excludes lease obligations.

At the end of the current fiscal year, total assets stood at 122.1 billion yen, a rise of 4.5 billion yen from the end of the previous fiscal year. The main factors of increase were 2.5 billion yen in cash and deposit, 1.5 billion yen in other under investments and other assets such as an increase in long-term time deposits, and 1.2 billion yen in investment securities due to an increase in unrealized capital gains. The main decrease was 1.2 billion yen in trade notes and accounts receivable. Liabilities increased 0.1 billion yen to 55.8 billion yen. The main factor of increase was 1.9 billion yen in accrued income taxes. The main decreases were 0.7 billion yen in interest-bearing debt, and 1.1 billion yen in other current liabilities. The net assets section posted an increase of 4.3 billion yen to 66.2 billion yen. There was an increase from net profit of 12.8 billion yen, while there were decreases of 7.8 billion yen in dividend payments, and 0.9 billion yen due to the effect of the revised Accounting Standard for Retirement Benefits. The equity ratio was 54.0%, up 1.6 percentage points from the end of the previous fiscal year.

8 Sanrio Company, Ltd. (8136) Financial Results for FY2014

2) FY2014 Cash Flow Position (100 millions of yen) FY2013 FY2014 Increase/decrease Cash flows from operating activities 174 144 (30) Cash flows from investing activities (86) (78) 8 Cash flows from financing activities (54) (119) (65) Effect of exchange rate changes on cash and cash equivalents 41 13 (28) Increase (decrease) in cash and cash equivalents 75 (40) (115) Cash and cash equivalents at beginning of year 341 416 75 Cash and cash equivalents at end of year 416 376 (40)

Cash flows from operating activities amounted to a provision of 14.4 billion yen (a year-on-year decrease of 3.0 billion yen). This was mainly attributable to net profit before income taxes and other adjustments of 19.4 billion yen (a year-on-year decrease of 1.1 billion yen), depreciation of 1.6 billion yen (an increase of 0.08 billion yen), and a 2.0 billion yen decrease in accounts receivable (compared with an increase of 1.4 billion yen a year earlier). On the other hand, there were a 2.4 billion yen decrease in other liabilities (compared with an increase of 3.0 billion yen a year earlier) and income taxes paid of 3.8 billion yen (a year-on-year decrease of 1.3 billion yen). Cash flows from investing activities resulted in a use of 7.8 billion yen (a year-on-year decrease of 0.8 billion yen). This was mainly attributable to net payments of 5.6 billion yen for increased time deposits (a year-on year decrease of 2.2 billion yen) and net payments of 2.0 billion yen for other investing activities (compared with net proceeds of 0.2 billion yen a year earlier). Cash flows from financing activities resulted in an outflow use of 11.9 billion yen (a year-on-year increase of 6.5 billion yen). This was mainly attributable to dividends paid of 7.8 billion yen (a year-on-year increase of 3.0 billion yen), net repayments of 1.8 billion yen for long-term borrowings (compared with net proceeds of 2.2 billion yen a year earlier), payment of 2.9 billion yen for the purchase of treasury stock (a year-on-year increase of 2.9 billion yen), while there were net proceeds of 1.1 billion yen from issuance and redemption of corporate bonds (compared with net payments of 0.3 billion yen a year earlier). As a result of the above, cash and cash equivalents at the end of the current fiscal year decreased 4.0 billion yen from the end of the previous fiscal year to 37.6 billion yen, including the effect of exchange rate changes.

Reference: The trend of cash flow-related indicators FY2010 FY2011 FY2012 FY2013 FY2014 Equity ratio (%) 34.9 41.7 50.1 52.4 54.0 Equity ratio, at market value (%) 260.4 322.0 379.6 260.9 229.4 Interest-bearing debt to cash flow ratio (%) 241.7 206.9 152.9 148.1 173.8 Interest coverage ratio (times) 22.8 29.4 43.3 50.6 47.3 Notes: Equity ratio: Shareholders’ equity / Total assets Equity ratio, at market value: Market capitalization / Total assets Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows Interest coverage ratio: Operating cash flows (excluding interest payment) / Interest payment * All indicators are calculated from consolidated financial data. * Market capitalization is calculated by multiplying the term-end listed stock price with the term-end number of shares outstanding (excluding treasury stock). * Cash flows use cash flows from operating activities stated on the consolidated cash flow statements. * Interest-bearing debt is a sum of all interest-bearing debt stated on the consolidated balance sheets (excluding lease obligations). * Interest payment uses the amount of interest paid stated on the consolidated cash flow statements.

9 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(3) Basic Policy Regarding Profit Distribution and Dividends for FY2014 and FY2015 Distributing earnings to shareholders is one of the highest priorities of Sanrio, and we decided to pay dividends that reflect the consolidated performance. We currently set dividend payments on the basic premise of a payout ratio of at least 30%, but we make our decisions regarding remaining profits while considering the capital required to invest for further growth into the future. Accordingly, we are considering suitable action to return profits to the shareholders, including the acquisition of treasury stock and increased dividends. Regarding dividends, although challenges remain for reform of the European and American regions and issues remain in domestic business, including reform of the profit structure, the Asian region performed better than expected in the plan while the Gudetama and other characters are cultivating new markets and proving popular. Accordingly, we are distributing a year-end dividend of 40 yen per share in line with our initial plan. Together with the 40 yen dividend paid out at the end of the second quarter, this amounts to an annual dividend of 80 yen, equal to the figure for the previous fiscal year. For the next fiscal year ending March 31, 2016, we plan to offer an annual dividend of 80 yen per share including interim and year-end dividends of 40 yen per share each. Our intention is to achieve still better results and return still more to the shareholders.

10 Sanrio Company, Ltd. (8136) Financial Results for FY2014

2. Corporate Structure The Sanrio Group (Sanrio Company, Ltd. and its affiliates) comprises the parent company, 26 subsidiaries, and 4 affiliates. It runs social communication gift, theme parks, and other businesses. The main content of the social communication gift business involves the planning and sale of social communication gifts, greeting cards, and publications as well as the production and sale of video software and authorization and management of copyrights. The theme parks business mainly comprises operation of the theme parks themselves and the planning and play of musicals and other events. The main content of the other business category includes restaurant management, robot rentals, development of computer game software, the leasing of motor vehicles, eating and drinking establishments, and non-life insurance agency business. Reportable segments Major group companies Main businesses Sanrio Company, Ltd. Planning & sales for social Sanrio Far East Co., Ltd.* communication gifts and authorization & management of copyrights Sanrio Entertainment Co., Ltd.* Operation of theme parks Kokoro Company Ltd.* Rental of robots Japan SANRIOWAVE Co., Ltd.** Sanrio Enterprise Co., Ltd.** Restaurant operation, motor vehicle Sanrio Car Lease Co., Ltd.** leasing, and food and drink business Sanrio Music Publishing Co., Ltd.** Pantry Co., Ltd.** Sanrio GmbH* Sanrio Global Ltd.* Planning & sales for social Mister Men Ltd.* communication gifts and authorization & Europe THOIP* management of copyrights Mister Films Ltd.* Sanrio UK Finance Ltd.* Loans Sanrio, Inc.* Planning & sales for social North America communication gifts and authorization & management of copyrights Sanrio Do Brasil Comercio Planning & sales for social Latin America e Representacoes Ltda.* communication gifts and authorization & Sanrio Chile SpA. * management of copyrights Sanrio Taiwan Co., Ltd.* Sanrio (Hong Kong) Co., Ltd.* Sanrio Korea Co., Ltd.* Planning & sales for social Sanrio Wave Hong Kong Co., Ltd.* Asia communication gifts and authorization & Sanrio Asia Merchandise Co., Ltd.* management of copyrights Sanrio (Shanghai) International Trading Co., Ltd.* Sanrio Global Asia Ltd.** Note: * Consolidated subsidiaries ** Unconsolidated subsidiaries

11 Sanrio Company, Ltd. (8136) Financial Results for FY2014

3. Management Policy (1) Basic Management Policy We believe that having a companion that you can talk with from the heart is one of the greatest forms of happiness for human beings. Our companions range from those closest to home — mother, father, children, brother, sister and lover — to our schoolmates and work mates, and then to all of humankind. In order to get along with one another, we need to trust, respect, and love others, and we need to express those feelings. This is Sanrio’s basic management philosophy of “Social Communication.” Based on the belief that we should expand the circle of good relations to children and people around the world, we have pursued the Social Communication business by adopting the watchwords “small gift, big smile.” This involves creating characters that convey caring feelings, planning and developing gift products that activate these feelings, and theme parks as venues for creating communication. Theme parks, especially, are venues that embody our key corporate philosophies. We are establishing these parks as venues to create a world view of characters, and establishing a management base as a source of development capability for the products and characters. We will continue to place importance on products that feel like a dream, environments that foster friendship, and staff that are full of affection and continue to create a world full of communication that allows everyone to feel secure and have fun. In order to connect people and make friends, we will plan products and services that enrich minds, and that children and adults alike can enjoy. We will endeavor to provide our customers with safe, high-quality, environmentally friendly products and services at reasonable prices, and prepare a comprehensive management structure. By sustaining these measures, we believe that Sanrio can contribute to society. We are endeavoring to commit the capabilities of our executives and employees so that we can unite with all stakeholders (especially customers) to respect the human rights of people around the world, and not yield to antisocial power but build a peace-loving society where everyone lives in happiness. We believe this will lead Sanrio on the road to becoming a unique presence as a company that is appreciated the world over.

(2) Target Performance Indicators and Medium to Long-Term Management Strategy 1) Target Performance Indicators The Company has set a dividend payout ratio of at least 30% and a management index for return on equity (ROE) of at least 20%.

2) Medium-term Business Plan The fiscal year ended March 31, 2015, marked the final year for the medium-term business plan titled “New Project 2015,” which was announced in May 2010 and revised in May 2011 with an operating profit target of 21 billion yen. The announcement of a new medium-term business plan is planned considering the current bottoming out of the revenue fall from the European and North American regions.

(3) Management Issues and Measures to be Tackled Management issues from the viewpoint of long-term growth are as follows.

1) Establishing Business with Long-Term Growth Potential Up until the previous fiscal year, we recorded four years of successive record profits on an operating profit basis. The main contributing factors were the merchandizing rights (product license) business with the Hello Kitty character in the European and U.S. regions. However, since the European economic crisis, sales have fallen for four consecutive years in that region, and in North America sales on a local currency basis have declined by half year-on-year for the fiscal year under review. Meanwhile, the Asian region has continuously returned moderate growth. Asian profits have been secured by the parallel establishment of businesses outside the merchandizing rights

12 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(product licenses) business, namely advertising rights (corporate promotion licenses; cafés, karaoke, aircraft and other space design licenses), franchise rights (store licenses), and promotional or production rights (amusement parks, aquariums, theaters, theme parks, and other entertainment licenses) with competition and help from 10 key characters, especially Hello Kitty. Accordingly, regarding the future development of markets in Africa, Russia, India, the ASEAN region, Latin America, and other regions and regeneration of growth in the European and North American markets, we are convinced that we can ensure long-term growth by creating a good balance between varieties of licence and characters for the future.

2) The Global Management System and Appointing Personnel The Sanrio Group is developing its character business in 130 countries and regions, and plans to expand to still more regions in the future. In this situation, it is essential to develop products suited to each region and collaborate closely with companies having local roots, but creating separate strategies for each region makes it difficult to support the flow of global products and personnel and to quickly respond to trends. We recognize it is essential to establish a global marketing system and consolidated group management through the provision of a globally integrated information management system and the appointment and nurturing of linguistically talented personnel.

3) Building Character Portfolios We recognize that character development and cultivation lie at the heart of the Sanrio Group. While we understand it is important for long-term growth to develop long-lived characters that everyone will support, continuing from major characters including Hello Kitty, My Melody, and Little Twin Stars, we also believe it is essential to build correct character mixes, continuing on from Gudetama, Kirimi-chan, and SHOW BY ROCK!!, develop characters through social networking and media as challenges for acquiring new customers, develop characters for men, and carry out mergers and acquisitions such as for Mr. Men and Little Miss.

4. Basic Approach for the Selection of Accounting Standards The Sanrio Group will continue to prepare consolidated financial statements based on generally accepted accounting principles in Japan. We are examining systems and schedule with regard to the application of International Financial Reporting Standards (IFRS) in the future.

13 Sanrio Company, Ltd. (8136) Financial Results for FY2014

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets (Millions of yen) FY2013 FY2014

(As of Mar. 31, 2014) (As of Mar. 31, 2015) Assets Current assets Cash and deposit 52,265 54,816 Trade notes and accounts receivable *2 12,770 11,567 Merchandise and finished goods *2 3,333 3,734 Work in process 40 24 Raw materials and supplies 171 158 Other accounts receivable 866 1,947 Deferred tax assets 1,615 1,369 Other 1,257 827 Allowance for doubtful accounts (82) (133) Total current assets 72,238 74,311 Fixed assets Tangible fixed assets Buildings and structures 53,733 53,832 Accumulated depreciation and impairment loss (46,443) (46,695) Buildings and structures, net 7,289 7,137 Machinery and vehicles 12,737 12,736 Accumulated depreciation and impairment loss (12,520) (12,541) Machinery and vehicles, net 217 194 Land 10,290 10,009 Lease assets 1,284 1,565 Accumulated depreciation and impairment loss (602) (684) Lease assets, net 682 880 Construction in process 14 12 Other 4,960 5,327 Accumulated depreciation and impairment loss (4,431) (4,670) Other, net 528 657 Total tangible fixed assets 19,022 18,891 Intangible fixed assets 4,865 5,254 Investments and other assets Investments securities 9,888 11,153 Long-term loans 87 59 long-term loans to employees 296 263 Guarantees 2,191 2,181 Deferred tax assets 3,340 3,018 Other 7,538 9,055 Allowance for doubtful accounts (1,983) (2,162) Total investments and other assets 21,359 23,569 Total fixed assets 45,248 47,714 Deferred assets Corporate bond issuance costs 98 97 Total deferred assets 98 97 Total assets 117,585 122,124

14 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(Millions of yen) FY2013 FY2014

(As of Mar. 31, 2014) (As of Mar. 31, 2015) Liabilities Current liabilities Trade notes and accounts payable 4,658 4,821 Short-term borrowings 9,409 8,380 Current portion of corporate bonds to be redeemed 2,368 2,448 Lease obligations 223 265 Accrued income taxes 740 2,715 Allowance for bonuses 456 483 Reserve for adjustment of returned goods 45 41 Other 11,387 10,218 Total current liabilities 29,288 29,373 Long-term liabilities Corporate bonds 4,592 5,694 Long-term borrowings 9,467 8,567 Lease obligations 493 681 Reserve for retirement benefits for directors 507 414 Provision for loss on guarantees 35 14 Long-term deposits received 545 531 Long-term accounts payable 183 418 Net defined benefit liability 9,522 9,435 Other 1,065 724 Total long-term liabilities 26,413 26,481 Total liabilities 55,701 55,855 Net assets Shareholders’ equity Capital 10,000 10,000 Capital surplus 3,423 3,423 Retained earnings 49,140 53,087 Treasury stock (1,882) (4,800) Total shareholder’s equity 60,681 61,710 Accumulated other comprehensive income Net unrealized gain (loss) on other securities 787 1,145 Deferred hedge gain (loss) 6 13 Foreign currency translation adjustments 2,922 5,643 Remeasurements of defined benefit plans (2,750) (2,531) Total accumulated other comprehensive income 966 4,270 Stock acquisition rights 167 165 Minority interests 67 121 Total net assets 61,883 66,269 Total liabilities and net assets 117,585 122,124

15 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements Consolidated Income Statements (Millions of yen) FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Sales 77,009 74,562 Cost of sales 23,654 24,003 Gross profit 53,355 50,558 Reversal from reserve for adjustment of returned goods 4 4 Net gross profit on sales 53,359 50,562 Selling, general and administrative expenses Sales and promotion expenses 3,591 3,594 Provision of allowance for doubtful accounts 854 150 Directors bonuses and salaries 7,422 7,592 Miscellaneous wages 2,945 3,067 Bonus 1,019 920 Provision of reserves for bonuses 447 472 Provision of allowance for retirement benefits for directors 16 20 Retirement benefit expenses 829 1,389 Freight charges 862 841 Rent 2,642 2,682 Depreciation 899 932 Other 10,806 11,429 Total selling, general and administrative expenses 32,340 33,094 Operating profit 21,019 17,468 Non-operating profit Interest income 331 425 Dividend income 187 193 Foreign exchange gain - 675 Insurance income 141 - Other income 230 293 Total non-operating profit 890 1,587 Non-operating expenses Interest expense 355 316 Foreign exchange loss 1,129 - Listing expenses 63 78 Other 181 135 Total non-operating expenses 1,729 530 Ordinary profit 20,180 18,525 Extraordinary gains Gain on sales of fixed assets *3 0 - Gain on sales of investment securities 383 1,233 Gain on reversal of stock acquisition rights 3 2 Total extraordinary gains 387 1,235

16 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(Millions of yen) FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Extraordinary losses Loss on disposal of fixed assets *1 50 *1 32 Impairment loss *2 7 *2 326 Loss on sale of investment securities 1 - Total extraordinary losses 58 359 Net profit before income taxes and other adjustments 20,508 19,401 Income taxes – current 4,621 5,660 Income taxes – deferred 3,051 897 Total income taxes 7,673 6,558 Income before minority interests 12,834 12,843 Minority interests in income of consolidated subsidiaries 31 38 Net profit 12,802 12,804

17 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Consolidated Comprehensive Income Statements (Millions of yen) FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Income before minority interests 12,834 12,843 Other comprehensive income Net unrealized gain (loss) on other securities 280 357 Deferred hedge gain (loss) (8) 7 Foreign currency translation adjustments 7,407 2,736 Remeasurements of defined benefit plans, net of tax - 219 Total other comprehensive income 7,678 3,320 Comprehensive income 20,513 16,163 Comprehensive income attributable to Comprehensive income attributable to owners of 20,462 16,109 parent Comprehensive income attributable to minority 50 54 interests

18 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(3) Consolidated Statements of Changes in Shareholders’ Equity FY 2013 (Apr. 1, 2013 – Mar. 31, 2014) (Millions of yen) Shareholders’ equity Total

Capital Capital surplus Retained earnings Treasury stock shareholders’ equity Balance at beginning of current 10,000 3,418 41,186 (1,884) 52,719 period Cumulative effects of changes in - - - - - accounting policies Restated balance 10,000 3,418 41,186 (1,884) 52,719 Changes of items during period Dividends of surplus - - (4,848) - (4,848) Net income - - 12,802 - 12,802 Purchase of treasury stock - - - (0) (0) Disposal of treasury stock - 5 - 3 8 Net changes of items other than - - - - - shareholders’ equity Total changes of items during - 5 7,954 2 7,962 period Balance at end of current period 10,000 3,423 49,140 (1,882) 60,681

Accumulated other comprehensive income Net Total Foreign Stock unrealized Deferred Remeasurements accumulated Minority Total net currency acquisition gain (loss) hedge gain of defined benefit other interests assets translation rights on other (loss) plans comprehensive adjustment securities income Balance at beginning 507 15 (4,465) - (3,942) 119 85 48,982 of current period Cumulative effects of changes in accounting ------policies Restated balance 507 15 (4,465) - (3,942) 119 85 48,982 Changes of items during period Dividends of surplus ------(4,848) Net income ------12,802 Purchase of treasury ------(0) stock Disposal of treasury ------8 stock Net changes of items other than 280 (8) 7,388 (2,750) 4,908 48 (18) 4,938 shareholders’ equity Total changes of items 280 (8) 7,388 (2,750) 4,908 48 (18) 12,901 during period Balance at end of 787 6 2,922 (2,750) 966 167 67 61,883 current period

19 Sanrio Company, Ltd. (8136) Financial Results for FY2014

FY 2014 (Apr. 1, 2014 – Mar. 31, 2015) (Millions of yen) Shareholders’ equity Total

Capital Capital surplus Retained earnings Treasury stock shareholders’ equity Balance at beginning of current 10,000 3,423 49,140 (1,882) 60,681 period Cumulative effects of changes in - - (964) - (964) accounting policies Restated balance 10,000 3,423 48,176 (1,882) 59,717 Changes of items during period Dividends of surplus - - (7,893) - (7,893) Net income - - 12,804 - 12,804 Purchase of treasury stock - - - (2,917) (2,917) Disposal of treasury stock - - - - - Net changes of items other than - - - - - shareholders’ equity Total changes of items during - - 4,910 (2,917) 1,993 period Balance at end of current period 10,000 3,423 53,087 (4,800) 61,710

Accumulated other comprehensive income Net Total Foreign Stock unrealized Deferred Remeasurements accumulated Minority Total net currency acquisition gain (loss) hedge gain of defined benefit other interests assets translation rights on other (loss) plans comprehensive adjustment securities income Balance at beginning 787 6 2,922 (2,750) 966 167 67 61,883 of current period Cumulative effects of changes in accounting ------(964) policies Restated balance 787 6 2,922 (2,750) 966 167 67 60,919 Changes of items during period Dividends of surplus ------(7,893) Net income ------12,804 Purchase of treasury ------(2,917) stock Disposal of treasury ------stock Net changes of items other than 357 7 2,720 219 3,304 (2) 54 3,356 shareholders’ equity Total changes of items 357 7 2,720 219 3,304 (2) 54 5,349 during period Balance at end of 1,145 13 5,643 (2,531) 4,270 165 121 66,269 current period

20 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(4) Consolidated Cash Flow Statements (Millions of yen) FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Cash flows from operating activities Net profit before income taxes and other adjustments 20,508 19,401 Depreciation 1,486 1,562 Amortization of long-term prepaid expenses 55 69 Increase (decrease) in allowance for doubtful accounts 779 26 Increase (decrease) in reserve for bonuses 57 22 Increase (decrease) in net defined benefit liability (718) (1,045) Increase (decrease) in reserve for adjustment of returned goods (4) (4) Increase (decrease) in reserve for retirement benefits for directors (12) (93) Interest and dividend income (518) (618) Interest expense 355 316 Loss (gain) on disposal of fixed assets 50 32 Impairment loss 7 326 Loss (gain) on sale of investment securities (381) (1,233) Decrease (increase) in accounts receivable (1,486) 2,062 Decrease (increase) in inventories (354) (337) Decrease (increase) in other assets (138) (187) Increase (decrease) in accounts payable (265) 20 Increase (decrease) in consumption tax payable (128) 409 Increase (decrease) in other liabilities 3,054 (2,491) Other 196 (222) Subtotal 22,543 18,016 Interests and dividends received 472 599 Interests paid (351) (311) Income taxes paid (5,215) (3,866) Cash flows from operating activities 17,448 14,438 Cash flows from investing activities Payments for time deposits (8,627) (26,202) Withdrawal of time deposits 715 20,589 Payments for purchase of tangible fixed assets (1,391) (645) Payments for purchase of investment securities (2,919) (7,245) Proceeds from sale of investment securities 1,912 7,548 Collection of loans receivable 1,310 191 Payments for guarantees (143) (135) Collection of guarantees 195 156 Other payments (1,115) (2,763) Other proceeds 1,410 688 Cash flows from investing activities (8,651) (7,818)

21 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(Millions of yen) FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Cash flows from financing activities Decrease in short-term borrowings (2,177) (39) Increase in long-term borrowings 5,774 3,900 Decrease in long-term borrowings (3,540) (5,790) Proceeds from issuance of corporate bonds 2,270 3,950 Payment for redemption of corporate bonds (2,633) (2,818) Payment for purchase of treasury stock (0) (2,917) Dividends paid (4,845) (7,883) Other payments (264) (322) Cash flows from financing activities (5,417) (11,921) Effect of exchange rate changes on cash and cash equivalents 4,170 1,301 Increase (decrease) in cash and cash equivalents 7,550 (4,000) Cash and cash equivalents at beginning of period 34,120 41,671 Cash and cash equivalents at end of period *1 41,671 *1 37,670

22 Sanrio Company, Ltd. (8136) Financial Results for FY2014

(5) Going Concern Assumption Not applicable.

(6) Changes in Accounting Policies Application of the accounting standard for retirement benefits The Company has applied the “Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No. 26, May 17, 2012)” and the “Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015)” from the current fiscal year, for provisions set forth in the main clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits and Paragraph 67 of the Guidance on Accounting Standard for Retirement Benefits. Accordingly, the Company reviewed the methods for calculating retirement benefit obligations and service costs, and revised the method of attributing estimated retirement benefit obligations to periods from the straight-line basis to the benefit formula basis, and revised the method of determining the discount rate from the method using the approximate number of years of expected average length of remaining service period of employees to the method using a single weighted average discount rate reflecting the estimated period and amount of benefit payment. For the application of this accounting standard, etc. in accordance with the transitional accounting treatments set forth in Paragraph 37 of the Accounting Standard for Retirement Benefits, the adjustments associated with the change in calculation methods of retirement benefit obligations and service costs are recorded in retained earnings at the beginning of the current fiscal year. The result was an increase of net defined benefit liability of 1,481 million yen, and a decrease of 964 million yen in retained earnings at the beginning of the current fiscal year. The effect of this change on operating profit, ordinary profit and net profit before income taxes and other adjustments for the current fiscal year is insignificant.

(7) Notes to Consolidated Financial Statements Relating to consolidated balance sheets (Millions of yen) FY2013 FY2014 (As of Mar. 31, 2014) (As of Mar. 31, 2015) 1. Guaranteed liabilities 1. Guaranteed liabilities Guarantees on employees’ bank loans Guarantees on employees’ bank loans 41 employees 93 36 employees 78

*2. Assets pledged as collateral Import letters of credit of Sanrio, Inc. are collateralized with at most the same amount of receivables, and merchandise and finished goods. Foreign currency 544,000 US$ Yen equivalent 57

23 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Relating to consolidated income statements (Millions of yen) FY2013 FY2014 (Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) *1. Loss on disposal of fixed assets *1. Loss on disposal of fixed assets Buildings and structures 44 Buildings and structures 23 Machinery and vehicles 0 Machinery and vehicles 0 Other 5 Other 8 Total 50 Total 32

*2. Impairment loss *2. Impairment loss The Group’s following assets are accounted for loss on The Group’s following assets are accounted for loss on impairment (7 million yen) in FY2013 (Millions of yen) impairment (326 million yen) in FY2014 (Millions of yen) Location, Location, Impairment Impairment Application number of Item Application number of Item loss loss cases cases Hinode- Buildings and Buildings and 6 9 machi, structures structures Store assets Nishitama- Oita and Other tangible Store assets Land 315 gun, Tokyo 0 others: 4 fixed assets Other tangible and others: 2 1 On these store assets, impairment losses are accounted as the fixed assets whole sum of the book value at the time impairment is For some stores, in order to make decisions regarding disposal, recognized because weak operating performance leads us to the difference between the net sales value and book value is expect that value of the future cash flows from these calculated as impairment loss. businesses could decline below their book values, and as a The net sales value is reasonably calculated on the basis of the result of estimating this utility value, they may not be viewed contract amount. as recoverable. For other stores, impairment losses are accounted as the whole The minimum unit used for assets of the theme parks business sum of the book value at the time impairment is recognized is a facility, and the minimum unit used for asset grouping in because weak operating performance leads us to expect that the other business assets is a store. value of the future cash flows from these businesses could decline below their book values, and as a result of estimating this utility value, they may not be viewed as recoverable. The minimum unit used for assets of the theme parks business is a facility, and the minimum unit used for asset grouping in the other business assets is a store.

*3. Gain on sales of fixed assets Machinery and vehicles 0 Total 0

24 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Relating to consolidated statements of changes in shareholders’ equity FY2013 (Apr. 1, 2013 – Mar. 31, 2014) 1. Class and number of outstanding shares (Shares) Number of shares as Number of shares as Class of stock Increase Decrease of Apr. 1, 2013 of Mar. 31, 2014 Common stock 89,065,301 - - 89,065,301 Total 89,065,301 - - 89,065,301

2. Class and number of treasury stock (Shares) Number of shares as Number of shares as Class of stock Increase Decrease of Apr. 1, 2013 of Mar. 31, 2014 Common stock 912,807 183 1,703 911,287 Outline of changes: Increase in the number of treasury stock Increase in common stock due to purchase of fractional shares: 183 shares Decrease in the number of treasury stock Decrease in common stock due to sales of fractional shares: 3 shares Decrease in common stock due to exercise of stock options: 1,700 shares

3. Stock acquisition rights Class of Number of shares for the purchase of stock acquisition rights Balance as of stock for (Shares) Company Breakdown of stock Mar. 31, 2014 stock Number of Number of name acquisition rights (Millions of acquisition shares as of Increase Decrease shares as of yen) rights Apr. 1, 2013 Mar. 31, 2014 Stock acquisition rights The by way of stock options - - - - - 167 Company (2011) Total - - - - 167

4. Dividends (1) Dividend payment Total dividends Dividend per share Resolution Class of stock Record date Effective date (Millions of yen) (Yen) Board of Directors Common stock 2,203 25.00 Mar. 31, 2013 Jun. 28, 2013 resolution on May 31, 2013 Board of Directors Common stock 2,644 30.00 Sep. 30, 2013 Dec. 6, 2013 resolution on Oct. 31, 2013

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year Source of Total dividends Dividend per Resolution Class of stock Record date Effective date funds (Millions of yen) share (Yen) Board of Directors Retained Common stock 4,407 50.00 Mar. 31, 2014 Jun. 27, 2014 resolution on May 30, 2014 earnings

25 Sanrio Company, Ltd. (8136) Financial Results for FY2014

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) 1. Class and number of outstanding shares (Shares) Number of shares as Number of shares as Class of stock Increase Decrease of Apr. 1, 2014 of Mar. 31, 2015 Common stock 89,065,301 - - 89,065,301 Total 89,065,301 - - 89,065,301

2. Class and number of treasury stock (Shares) Number of shares as Number of shares as Class of stock Increase Decrease of Apr. 1, 2014 of Mar. 31, 2015 Common stock 911,287 1,000,247 - 1,911,534 Outline of changes: Increase in the number of treasury stock Increase in common stock due to purchase of fractional shares: 247 shares Increase in common stock due to purchase: 1,000,000 shares

3. Stock acquisition rights Class of Number of shares for the purchase of stock acquisition rights Balance as of stock for (Shares) Company Breakdown of stock Mar. 31, 2015 stock Number of Number of name acquisition rights (Millions of acquisition shares as of Increase Decrease shares as of yen) rights Apr. 1, 2014 Mar. 31, 2015 Stock acquisition rights The by way of stock options - - - - - 165 Company (2011) Total - - - - 165

4. Dividends (1) Dividend payment Total dividends Dividend per share Resolution Class of stock Record date Effective date (Millions of yen) (Yen) Board of Directors Common stock 4,407 50.00 Mar. 31, 2014 Jun. 27, 2014 resolution on May 30, 2014 Board of Directors Common stock 3,486 40.00 Sep. 30, 2014 Nov. 20, 2014 resolution on Oct. 31, 2014

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year Source of Total dividends Dividend per Resolution Class of stock Record date Effective date funds (Millions of yen) share (Yen) Board of Directors Retained Common stock 3,486 40.00 Mar. 31, 2015 Jun. 9, 2015 resolution on May 29, 2015 earnings

Relating to consolidated cash flow statements (Millions of yen) FY2013 FY2014 (Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) *1. Adjustments to reconcile balance of cash and cash *1. Adjustments to reconcile balance of cash and cash equivalents at end of period with balance sheet amounts equivalents at end of period with balance sheet amounts (As of Mar. 31, 2014) (As of Mar. 31, 2015) Cash and bank deposits 52,265 Cash and bank deposits 54,816 Time deposits with over three-month deposit period (10,594) Time deposits with over three-month deposit period (17,145) Cash and cash equivalent 41,671 Cash and cash equivalent 37,670

26 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Segment Information 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 overseas consolidated subsidiaries in each region conduct business operations in Europe (mainly Italy, France, Spain, Germany and the U.K.), North America (mainly the United States), Latin America (mainly Brazil, Chile, Argentina, Peru and Mexico) 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. 2. Calculation method for sales, profit or loss, assets, liabilities and other items for each reportable segment The accounting method used for reportable business segments generally accords with those listed in “Significant Accounting Policies in the Preparation of Consolidated Financial Statements.” Profits for reportable segments are operating profit. Profits and transfer sums for inter-segment transactions within the Group are based on market prices. 3. Information related to sales, profit or loss, assets, liabilities and other items for each reportable segment FY2013 (Apr. 1, 2013 – Mar. 31, 2014) (Millions of yen) Reportable segment Amounts shown on Adjustment consolidated North Latin Japan Europe Asia Total (Note 1) financial America America statements (Note 2) Sales Customers 46,087 9,853 11,883 1,731 7,453 77,009 - 77,009 (Royalty income) ( 8,677) ( 9,608) ( 10,102) ( 1,714) ( 4,871) ( 34,974) ( -) ( 34,974) Inter-segment 12,432 14 30 30 1,465 13,973 (13,973) - (Royalty income) ( 12,033) ( 12) ( 25) ( 30) ( 52) ( 12,155) ( (12,155)) ( -) Total 58,520 9,868 11,913 1,762 8,919 90,983 (13,973) 77,009 Segment profit 12,811 3,191 3,988 525 1,321 21,839 (820) 21,019 Segment assets 73,575 25,472 13,510 2,731 10,244 125,533 (7,948) 117,585 Other assets Depreciation 1,135 269 81 23 21 1,531 10 1,542 Increase in tangible and 1,963 30 3 52 70 2,118 8 2,127 intangible fixed assets Notes: 1. Adjustments to segment profits are as follows. (1) The minus 820 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) The minus 7,948 million yen adjustment to segment assets is the sum of eliminations for inter-segment transactions and corporate assets which belong to administration department of the Company. (3) The 10 million yen adjustment to depreciation is the sum of eliminations for inter-segment transactions and depreciation related to corporate assets. (4) The 8 million yen adjustment to increases in tangible and intangible fixed assets is the sum of inter-segment transactions and an increase in corporate assets. 2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements. 3. Depreciation includes amortization related to long-term pre-paid expenses.

27 Sanrio Company, Ltd. (8136) Financial Results for FY2014

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) (Millions of yen) Reportable segment Amounts shown on Adjustment consolidated North Latin Japan Europe Asia Total (Note 1) financial America America statements (Note 2) Sales Customers 46,862 8,583 8,994 1,884 8,237 74,562 - 74,562 (Royalty income) ( 9,839) ( 8,421) ( 7,362) ( 1,876) ( 5,946) ( 33,447) ( -) ( 33,447) Inter-segment 10,885 137 30 18 2,621 13,693 (13,693) - (Royalty income) ( 10,181) ( 134) ( 30) ( 18) ( 66) ( 10,431) ( (10,431)) ( -) Total 57,747 8,720 9,024 1,902 10,859 88,255 (13,693) 74,562 Segment profit 10,406 2,616 1,827 518 2,812 18,179 (711) 17,468 Segment assets 69,814 27,463 11,514 3,146 12,425 124,364 (2,239) 122,124 Other assets Depreciation 1,131 341 87 30 38 1,630 1 1,631 Increase in tangible and 1,366 45 4 12 42 1,472 - 1,472 intangible fixed assets Notes: 1. Adjustments to segment profits are as follows. (1) The minus 711 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) The minus 2,239 million yen adjustment to segment assets is the sum of eliminations for inter-segment transactions and corporate assets which belong to administration department of the Company. (3) The 1 million yen adjustment to depreciation is the sum of eliminations for inter-segment transactions and depreciation related to corporate assets. 2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements. 3. Depreciation includes amortization related to long-term pre-paid expenses.

Related information FY2013 (Apr. 1, 2013 – Mar. 31, 2014) 1. Information by product or service (Millions of yen) Social communication gifts Theme parks Other Total Customers 68,569 6,245 2,194 77,009

2. Information by region (1) Sales (Millions of yen) Japan Europe North America Asia Other Total 44,895 9,894 11,941 8,546 1,732 77,009 Note: Sales are based on the location of the client and categorized by country or region.

(2) Tangible fixed assets (Millions of yen) Japan Europe North America Latin America Asia Other Total 15,397 1,219 1,984 322 81 16 19,022

3. Information about specific customers Omitted because no single external customer accounts for 10% or more of sales as shown on the consolidated income statements.

28 Sanrio Company, Ltd. (8136) Financial Results for FY2014

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) 1. Information by product or service (Millions of yen) Social communication gifts Theme parks Other Total Customers 66,059 6,486 2,015 74,562

2. Information by region (1) Sales (Millions of yen) Japan Europe North America Asia Other Total 45,783 8,621 9,004 9,265 1,886 74,562 Note: Sales are based on the location of the client and categorized by country or region.

(2) Tangible fixed assets (Millions of yen) Japan Europe North America Latin America Asia Other Total 15,106 1,176 2,192 315 84 15 18,891

3. Information about specific customers Omitted because no single external customer accounts for 10% or more of sales as shown on the consolidated income statements.

Information related to impairment loss of fixed assets for each reportable segment FY2013 (Apr. 1, 2013 – Mar. 31, 2014) The “Japan” segment represents balance after an impairment loss of 7 million yen on store assets.

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) The “Japan” segment represents balance after an impairment loss of 326 million yen on store assets.

Information related to goodwill amortization and the unamortized balance for each reportable segment FY2013 (Apr. 1, 2013 – Mar. 31, 2014) Amortization of goodwill of 34 million yen was recorded in the “Europe” segment. Unamortized balance of this goodwill was 311 million yen.

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) Amortization of goodwill of 39 million yen was recorded in the “Europe” segment. Unamortized balance of this goodwill was 292 million yen.

29 Sanrio Company, Ltd. (8136) Financial Results for FY2014

Per Share Information (Yen) FY2013 FY2014 (Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015)

Net assets per share 699.32 Net assets per share 757.07 Net profit per share 145.24 Net profit per share 146.53 Fully-diluted net profit per share 145.20 Fully-diluted net profit per share -

Notes: 1. Basis for calculating net assets per share are as shown below. FY2013 FY2014

(As of Mar. 31, 2014) (As of Mar. 31, 2015) Total net assets on the consolidated balance sheets (million 61,883 66,269 yen) Net assets associated with common stock shares (million 61,648 65,981 yen) Breakdown of differences (million yen) Stock acquisition rights 167 165 Minority interests 67 121 Number of common stock shares outstanding (thousand 89,065 89,065 shares) Number of shares of treasury common stock (thousand 911 1,911 shares) Number of common stock shares used in calculation of net 88,154 87,153 assets per share (thousand shares)

2. Basis for calculating net profit per share and fully-diluted net profit per share are as shown below. FY2013 FY2014

(Apr. 1, 2013 – Mar. 31, 2014) (Apr. 1, 2014 – Mar. 31, 2015) Net profit per share Net profit (million yen) 12,802 12,804 Amount not returned to common stock shareholders - - (million yen) Net profit attributable to common stock (million yen) 12,802 12,804 Average number of common stock shares outstanding 88,153 87,384 (thousand shares) Fully-diluted net profit per share Increase in number of shares of common stock 19 - Stock option (thousand shares) ( 19) ( -) Summary of potential shares not included in the calculation of fully-diluted net profit per share due to lack of dilution - - effect

Subsequent Events FY2013 (Apr. 1, 2013 – Mar. 31, 2014) Not applicable.

FY2014 (Apr. 1, 2014 – Mar. 31, 2015) Not applicable.

30 Sanrio Company, Ltd. (8136) Financial Results for FY2014

6. Other Information (1) Change in Directors (effective on June 25, 2015) 1. New director candidate Director: Yuko Tsuji (current Operating Officer) (Profile of Ms. Yuko Tsuji) December 2013: Joined the Company June 2014: Operating Officer (to present)

2. Retiring director Director: Yoshio Furuhashi (to be appointed as Executive Auditor)

3. New auditor candidate Executive Auditor: Yoshio Furuhashi (current Director and General Manager, Administration and General Affairs Department)

4. Retiring auditor Executive Auditor: Iwao Chiba

(2) Others Not applicable.

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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