Toei Animation (4816) investor relations material

Executive summary

• Net sales for the nine months ended December 31, 2025, were ¥67,141 million, down 6.5%–7.6% year-over-year.

• Operating profit for the same period was ¥23,318 million, nearly flat year-over-year, with profitability improving due to a favorable sales mix and lower production costs.

• Ordinary profit rose 2.9% year-over-year to ¥25,078 million; net profit attributable to owners of parent increased 6.0% to ¥17,919 million.

• Net sales for the third quarter reached the second highest ever, while operating profit was the third highest; ordinary income and net profit hit record highs for the period.

• Profitability improved despite a decline in overall sales from the previous year's strong performance in streaming and goods sales.

Financial highlights

• Gross profit margin improved, and extraordinary gains included foreign exchange gains and profits from sale of securities.

• Comprehensive income totaled ¥19,151 million, nearly flat year-over-year.

• Basic earnings per share for the period was ¥87.67, compared to ¥82.68 in the prior year.

Outlook and guidance

• Net sales and profits are progressing in line with or ahead of plan, with strong performance in highly profitable segments, especially overseas licensing.

• Full-year net sales forecast is ¥88,000 million, a 12.7% decrease year-over-year; operating profit is projected at ¥26,000 million, down 19.8%; profit attributable to owners of parent is forecast at ¥19,100 million, a 19.1% decrease.

• Full-year forecasts are maintained due to economic uncertainties, including geopolitical risks.

• Dividend policy remains stable, with a payout ratio of 35.5% and annual dividend per share forecast at ¥41.00.

• No special or commemorative dividends announced for the third quarter.