TOMY Company, Ltd. Company Information TSE Securities Code: 7867 Overview of TOMY Company Overview Group Companies As of Mar 31, 2020 • TOMY Company, Ltd. (TOMY) was founded in 1924. Japan T-ARTS TOMY TEC • Founding Philosophy： TOMY Marketing ✓ Let’s excite the world’s markets with our Company, Ltd , etc Number of outstanding products. North TOMY Holdings consolidated ✓ Our sincerity and diligence will contribute America TOMY International, subsidiaries: to society and lead to our own success and Europe and etc 32 happiness. Oceania Asia TOMY Hong Kong • Business Domains: TOMY Thailand , etc ✓ Toy business ： Planning, developing and Distribution of Ownership among manufacturing products such as toys, and Shareholders baby products. As of Mar 31, 2020 ✓ Toy-Periphery business: Manufacturing and selling of capsule toys, 21.21% candy toys and railway models. 43.78% • We are listed on the first section of the Tokyo 10.16% Ownership Ratio Stock Exchange and have a market cap of ¥73.3 billion as of Mar 31, 2020 • Number of Employees 2,568 （consolidated,as of Individual Investors 23.29% Mar31, 2020） Financial Institutions Other Corporations １ Page 1 Foreign Corporations and Investors Overview of TOMY (JPY in billion) TOPIC 1 TOPIC 3 TOPIC 2 TOPIC 4 TOPIC 7 TOPIC 5 TOPIC 6 Net sales(left) Operating Income(right) EBITDA(right) TOPIC 1 • TAKARA was merged into TOMY, and this absorption-type merger resulted in a substantial increase in net sales despite the recording of a large extraordinary loss. TOPIC 2 • Operating income was boosted, not only by a reduction in products with low profitability, but also by hit performances of the Metal Fight Beyblade products for boys and the products related to the Transformers movie, as well as group-wide business restructuring. TOPIC 3 • Acquisition of U.S. toy manufacturer RC2 boosted net sales. TOPIC 4 • Conducted solicitation for voluntary retirement and started business structural reforms in response to struggling toy sales in Japan and worsening of overseas business performances. TOPIC 5 • Decision to sell unprofitable video game wholesaler subsidiary (impact on net sales of -¥30.7 billion YoY) and to partially withdraw business in China led to the bottoming out of business performance. TOPIC 6 • We set out three revolutions in the policy of the previous Medium-Term Management Plan: “Product revolution,” “Structure revolution of business” and “Revolution of mind”, aiming to increase profit by growing sales. TOPIC 7 • We announced the new Medium-Term Management Plan toward the target to “Take on the Challenge toward New Growth,” focusing on promoting six business strategies, and achieved new record highs. 2 ２ Core Toy Brands in Japan In addition to our line-up of many long-standing toy products with stable sales, we continue to create new hit products. Tomica Plarail Licca Doll • Long-sellers celebrating their 50th • Plarail is a toy train and plastic truck • Licca is a fashion doll series, anniversary in 2020 system based on the actual trains celebrating its 50th anniversary in 2017 (Total sales volume is over 60 million) • Tomica is Japan‘s first palm-sized • Long-sellers celebrating their 60th diecast toy miniature car based on anniversary in 2019 • Using SNS to promote the brand Japanese vehicles • More than 1,370 kinds of trains • More than 1,050 kinds of vehicles launched, sold over169 million pieces. launched, sold over 670 million pieces. Amusement Machines Railroad models (N gauge) Duel Masters • Arcade games for children • No.1 share in Japan • Trading card game that has been sold since • Develop products such as Pokémon Ga-Olé • Wide range of products from 2002 rail cars to dioramas Duel Masters Play‘s • Full-scale app of the trading card game “DUEL Masters • Replication of play scene for adults to bringback the old memories of their childhood play 3 3 Overseas Core Toy Brands We will further expand sales of toys of Japanese origin, TOMY International toys and baby merchandise Global toys born in Japan • Global agriculture vehicle toys • Wide range of products line from preschool to high-end replicas • More than 500 million products sold • Launched over 130 countries around the world • Age-appropriate baby and infant • Wide range of products including educational toys baby bottles, toddler cups and • Developed with the advice of the • The third generation Beyblade launched in 2015 plates, baby carriages, etc. infant specialist • 350 million units sold over 80 countries 4 TOMY International 4 Toy-Periphery Products and Strategy Leveraging popular brand content to maximize revenue opportunities Miscellaneous daily Books goods Tomica Shop Amusement Machines Apparel Capsule Toys DVD Candy-Toy Page 5 5 Midterm Corporate Strategy The TOMY Group is pursuing the following business strategies as part of the Medium-Term Management Plan from the fiscal year ended March 31,2019 to the fiscal year ending March 31,2021. ①Promote in-house original global brand strategies ②Create original brands for Japan and Asia ③Category No.1 strategy ④Expand business in “high-target”products for adults segment and for the elderly segments ⑤Expand business in Asia market ⑥Comprehensive strategy for business revitalization for Europe and North America We have been aimed at “net sales of ¥190.0 billion and operating profit of ¥16.0 billion” for the fiscal year ending March 31, 2021, which is deemed to be the final fiscal year in the Medium- Term Management Plan; however, we find it difficult to predict the degree of consumption slump caused by the spread of COVID-19, as well as the timing of the end of the infection, and also to reasonably calculate its impact; therefore, we shall not determine earnings forecasts at this moment. We intend to announce the forecasts as quickly as possible, when we determine the impact of the spread of COVID-19 on our performance for the fiscal year ending March 31, 2021, and are able to disclose reasonable forecasts. Page 6 6 Experienced Management, Strong Board • Under Kazuhiro Kojima, Representative Director, President & COO, a new management system began in January 2018. • A management system with two Representative Directors was introduced and we are promoting prompt management. • In FY2018 a female Director was elected and in FY2019 the Board of Directors is composed of a majority of Outside Directors. As such, we are striving to strengthen the Board of Directors. Kantaro Tomiyama • In June 2015, appointed Representative Representative Director & Chairman of TOMY Director & Chairman • Over 30 years experience in toy industry • Led the merger of TOMY and Takara • Performed difficult restructuring initiatives decisively after taking the President role in 1986 • Received B.A. in Sociology from the University of Hull in England 5inside 6 outside • Grandson of TOMY’s founder, Eichiro directors directors Tomiyama, and son of former President, 45.5％ Board Members 54.5％ Masanari Tomiyama 11 directors Kazuhiro Kojima • Appointed as Representative Director & President of TOMY Representative Director, Company, Ltd. in January 2018 President & COO • 1983 Graduated from the University of Tokyo and joined Mitsubishi Corporation • 2008 Executive Officer of Marunouchi Capital Co., Ltd. • 2009 Outside Director of TOMY Company, Ltd. • 2012 Board Director and Senior Executive Officer • 2017 Representative Director, COO & CFO • Over 15 years of experience related to venture capital and the buyout business • Achievements in creating more efficient production and logistics and in improving businesses in Europe 7 7 CSR Activities The TOMY Group takes an original approach to CSR activities that is quite different from other companies. TOMY has a long-term commitment to making advances in these areas. Accessible toys Safety and quality criteria In our global development of products, we ensure our products are safe and In 1980, TOMY began to develop “accessible toys” which are products high quality not only by complying with the laws and ordinances, and that differently-abled people can use without difficulties. TOMY is an regulatory standards of each country and region, but also by establishing advocate of this initiative and expands the activity not only across the original TOMY Group safety and quality criteria. By ensuring our products Japanese toy industry but also to other industry and regions. adhere to these stricter standards, we aim to prevent accidents from ever occurring. Raised dot The TOMY Group hold annual meetings attended by all employees for discussions, led by the units in charge of product safety and quality, which are Logo for Accessible Design Toys geared toward promoting awareness and understanding of the importance of safety and quality control. Eco-toys Testing being conducted on in-house equipment In addition to manufacturing environmentally friendly toys, TOMY intends Regional contribution to help inspire a sense of responsibility for the environment to children, TOMY concluded an agreement on collaboration and cooperation with who hold the keys to the future. As an industry leader in this field, TOMY Katsushika City, a city steeped in toy history, in July 2017. As a launched its Eco-Toy program in 2011 and started reducing toys made company with its headquarters in Katsushika City, TOMY is participating with safe, recycled plastic in July 2012. Consequently, the Plarail “Eco and cooperating in events and other initiatives organized by Katsushika City aimed at social contribution and regional revitalization. Straight-Line Rail” and “Eco Curved Rail” products were the first toys to be certified to carry the Eco Mark by the Japan Environment Association. These “green rails” are A Halloween Parade composed of 50% or more organized in cooperation with safe recycled materials. Katsushika City, a local shopping arcade, the police, and the fire department 8 8 This report contains forward-looking statements, targets, plans and strategies for the future. However, these are based on current information and will not guarantee nor warrant any financial estimates or any figures. Therefore, actual results could differ from this report.