Tomy Co Ltd (TOMYF) Q1 2027 Earnings Call Transcript

August 4, 2026 TOMY Company, Ltd.

Telephone Conference for the First Three Months of the Fiscal Year Ending March 31, 2027: Questions and Answers Section Q. You mentioned that the positive impacts on profits from U.S. tariff refunds and ERP system failures are approximately 1 billion yen. Could you provide a breakdown of this amount? Also, were these impacts incorporated into the initial plan for the fiscal year? Additionally, will the impact of the ERP system failures continue into the second quarter and beyond? A. (Ito, Managing Director & CFO): We explain the profit impact in terms of net amounts due to stakeholder relations. The impacts of the tariff refunds and ERP system failures were not incorporated into the initial plan for the fiscal year. Furthermore, the major issues related to the ERP failures have already been resolved. Q. Since the Golden Week major holiday period in early May, outbound demand for overseas travel by Japanese citizens has been shrinking, while domestic entertainment-related demand, with “affordable, nearby, and short” as the keywords, seems to be expanding. Could you tell us if this has a positive impact on your business performance? A. (Ito, Managing Director & CFO): Both “GACHA capsule toys” and Kiddy Land are performing well. Based on the order situation and other factors, we believe this trend will continue. Q. Amid rising inflation, what discussions are taking place internally regarding additional price revisions? A. (Ito, Managing Director & CFO): We are continuously reviewing price revisions. We carefully decide which product price ranges to target, considering market environment and target demographics. As we regularly launch new products, we also determine their pricing by taking into account the market environment. Q. Sales in Asia have significantly increased, and it seems that this growth is accelerating compared to previous quarters. Could you tell us the factors behind this growth, specifically whether it was driven by specific products or if a wide range of products performed well? Also, do you expect this trend to continue into the second quarter and beyond? A. (Ito, Managing Director & CFO): The Asian market is performing well overall. A wide range of products, including “BEYBLADE X” and “TOMICA,” are experiencing growth. We are increasing production of “BEYBLADE X,” and currently, there are no signs of a downward trend.

August 4, 2026 TOMY Company, Ltd.

Q. Could you explain the factors behind the strong performance of the Japanese business and its sustainability? Also, is there potential for an upside in the second quarter compared to the firsthalf plan? A. (Ito, Managing Director & CFO): The Japanese business is not dependent on specific products or categories. Looking ahead, we aim to strengthen the appeal of new products and content through the launch of new trading card games and increased production of “BEYBLADE X.” While we refrain from commenting on specific forecasts for the second quarter and beyond, we are committed to continuously introducing attractive new products. Q. Regarding U.S. tariff refunds, will there be any refunds in the second quarter and beyond? Also, could you share your perspective on transfer pricing taxation? A. (Ito, Managing Director & CFO): We recognize that the impact of tariff refunds will be limited in the second quarter and beyond. Regarding transfer pricing taxation, we are working on forming agreements on pricing and profit margins through advance pricing arrangements with tax authorities in various countries, aiming to reduce tax risks. We also recognize this as an effective measure to prepare for tax risks associated with future overseas expansion. Q. Could you provide your current perspective on the relationship between the success of films and related products, and their impact on future business performance? A. (Ito, Managing Director & CFO): While we anticipate a certain level of contribution to our performance from film-related products, our revenue structure is no longer significantly affected by the success of a single film as it was in the past. We position these products as one of the contributors to our business, and we expect them to aid in improving our profitability over the medium to long term. Q. Regarding the North American expansion of “GACHA capsule toys”, could you share insights on the increase in the number of stores and units, sales growth prospects, and the reception in the market? A. (Ito, Managing Director & CFO): The number of stores and units for “GACHA capsule toys” installations is steadily increasing. We have also confirmed growth potential through the deployment of test stores. With the anticipated increase in foot traffic during the summer vacation season, we expect further growth, although there may be some fluctuations. Q. Concerning the North American expansion of “LICCA dolls,” what is your sense of its success, and how do you plan to advance the business?

August 4, 2026 TOMY Company, Ltd.

A. (Ito, Managing Director & CFO): Currently, we are primarily expanding in hobby-oriented stores, and we have received additional orders. Given the stable sales volume secured through hobby-oriented chains, we anticipate a continued expansion of sales, particularly among the Kidults demographic. End of Document