Interim report
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1 Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Summary (Translation) October 31, 2025 TSUBURAYA FIELDS HOLDINGS INC. Consolidated Financial Results for the Six Months Ended September 30, 2025 (Under Japanese GAAP) Company name: TSUBURAYA FIELDS HOLDINGS INC. (URL: https://www.tsuburaya-fields.co.jp/e/) Listing: Tokyo Stock Exchange Securities code: 2767 URL: https://www.tsuburaya-fields.co.jp/e/ Representative: Hidetoshi Yamamoto, President and Group CEO Inquiries: Kenichi Ozawa, Director and Group CFO Telephone: +81-3-5784-2111 Scheduled date to file semiannual securities report Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Holding of quarterly financial results briefing: November 7, 2025 - Yes Yes (for analysts and institutional investors) (Yen amounts are rounded down to millions) 1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate YoY changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 95,953 109.7 13,595 233.9 13,904 160.8 9,552 238.3 September 30, 2024 45,760 (31.7) 4,071 (24.2) 5,330 (9.8) 2,823 (31.5) (Note) Comprehensive income For the six months ended September 30, 2025: ¥ 9,686 million [141.6%] For the six months ended September 30, 2024: ¥ 4,009 million [9.7%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 153.52 153.05 September 30, 2024 45.08 44.98 (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 111,371 62,860 51.7 March 31, 2025 98,953 56,247 51.6 (Reference) Equity As of September 30, 2025: ¥ 57,541 million As of March 31, 2025: ¥ 51,044 million 2. Cash dividends Annual dividends Q1-end Q2-end Q3-end Fiscal year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2025 - 0.00 - 50.00 50.00 Fiscal year ending March 31, 2026 - 0.00 Fiscal year ending March 31, 2026 (Forecast) - 50.00 50.00 (Note) Revisions to the forecast of cash dividends most recently announced: None
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3. Forecast of consolidated earnings for the fiscal year ending March 31, 2026 (April 1, 2025 to March 31, 2026) (Percentages indicate YoY changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Mi llions of yen % Millions of yen % Yen Full-year 170,000 20.9 18,000 17.7 18,300 11.2 12,800 14.7 205.69 (Note) Revision of the most recently released performance forecasts: Yes The number of shares outstanding as of September 30, 2025 (excluding treasury shares) is used as the average number of shares during the period used to calculate “Basic earnings per share.”
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*Notes (1) Changes in significant subsid iaries during the period: None (2) Application of accounting methods specific to the prepar ation of quarterly consolidated financial statements: Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: None (ii) Changes in accounting policies due to other reasons other than (3) (i): None (iii) Changes in accounting estimates: Yes (iv) Restatement: None (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 65,429,150 shares As of March 31, 2025 65,429,150 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 3,198,305 shares As of March 31, 2025 3,212,700 shares (iii) Average number of shares outstanding during the period (quarterly consolidated cumulative period) Six months ended September 30, 2025 62,223,248 shares Three months ended June 30, 2024 62,623,610 shares * Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing firm: None * Proper use of earnings forecasts, and other special matters The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual result s, etc. may differ materially from the forecasts due to variou s factors. For the assumptions underlying the forecasts, please refer to 1. Qualitative Information on the Current Interim Financial Results (1) Financial results on page two and (2) Earnings forecast on page five. (How to obtain supplementary materials on financial results) The financial results briefing materials are disclosed on the Company’s website on the same day.
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Consolidated Financial Results for the Six Months Ended September 30, 2025 1 Table of Contents of Attached Document 1. Qualitative Information on the Current Interim Financial Results 2 (1) Financial Results .................................................................................................................................................. 2 (2) Explanation Regarding Forward-Looking Statements Including Consolidated Earnings Forecasts ...................... 5 (3) Overview of Financial Position ............................................................................................................................ 6 2. Consolidated Financial Statements and Important Notes 7 (1) Consolidated Balance Sheets .............................................................................................................................. 7 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ........................ 9 (3) Consolidated Statements of Cash Flows ........................................................................................................... 11 (4) Notes Regarding the Six Months Consolidated Financial Statements............................................................... 12 (Notes Regarding the Operation of the Company as a Going Concern) ...................................................................... 12 (Notes Regarding Occurrence of Significant Change in Amount of Shareholders’ Equity) .......................................... 12 (Application of the Accounting Method Specific to Consolidated Financial Statements for the First Half) ................ 12 (Segment Information, etc.) ........................................................................................................................................ 13
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Consolidated Financial Results for the Six Months Ended September 30, 2025 2 1. Qualitative Information on the Current Interim Financial Results (1) Financial Results Japan’s economy during the interim consolidated accounting period maintained a moderate recovery trend, supported by widespread wage increases resulting from the Shunto (spring wage offensive), which is an annual wage negotiation campaign conducted in Japan, typically starting in spring, and government initiatives to counter rising prices. However, downside risks to the economy remain, such as U.S. trade po licies and the suppression of personal consumption due to inflation, leaving the outlook uncertain. In October 2025, the newly inaugurated Takaichi administrati on announced a policy of “responsible proactive fiscal management,” focusing on measures to counter rising price s and promote growth-oriented investment. Household support initiatives include the potential abolition of the provisional gasoline tax rate, the introduction of refundable tax credits, and a review of the basic income tax deduction. In addition, strate gic investments are being made in key sectors such as AI, semiconductors, and defense, alongside efforts to restart nucle ar power plants, aiming to enhance economic security and growth potential. These policies are expected to help underpin consumption and improve corporate earnings and are seen as positive steps toward sustained economic growth. In financial markets, the ch ange of government has been accompanied by rising stock prices and a trend towards a weaker yen, which are having favo rable effects on corporate activity and stock prices. Going forward, while closely monitoring the impact of government policies and market developments, efforts aimed at economic stability and growth are expected to be progressively put into action. In this interim period, guided by the corporate philosophy of “ The Greatest Leisure for All People”, our Group steadily advanced initiatives aimed at achieving sustainable growth and creating long-term corporate value. Regarding the amusement equipment business, sales of pach inko/pachislot (PS) machines equipped with major IPs progressed smoothly, and increased production of models sold in the previous fiscal period contributed significantly to results. Strengthening the product development and sales structure ce ntered on FIELDS CORPORATION (hereinafter, “FIELDS”) has steadily increased the number of products highly rated by fans and parlors. In addition, at ACE DENKEN Co., Ltd., progress has been made in improving operational efficien cy through the integration of sales office s with FIELDS, as well as in developing new customer relationships. These efforts are expected to further strengthen the business foundation. In the content and digital business, Tsu buraya Productions Co., Ltd. temporarily recorded declines in revenue and profit, mainly due to reduced licensing income for its key products—blo ck toys and trading card–related items in the Chinese market. Meanwhile, other business categories have remained generally firm, contributing to stable profit generation. Currently, we are rolling out the “Ultraman Series Broadcast 60th Anniversary” commemorative project over a two-and-a- half-year period through December 2027, and are proactively promoting various initiatives. In this project, in addition to MD (merchandise) development such as licensed products and card games in collaboration with partner companies, large-scale collaborations with new companies are also progressing, and we aim to further enhance the value of the Ultraman IP both in Japan and overseas. As a result, the Group’s consolidated results for the interim consolidated accounting period were as follows: net sales ¥95,953 million (up 109.7% YoY), operating profit ¥13,595 million (up 233.9% YoY), ordinary profit ¥13,904 million (up 160.8% YoY), and profit attributable to owners of parent ¥9,552 million (up 238.3% YoY). The overview of each business segment is as follows. Content and Digital Business Segment The status of TDP during the interim consolidated accounting period is as follows. Net sales was ¥5,100 million, of which the total of the majo r categories (license/MD (pro duct sales)/imaging and event revenues) was ¥4,790 million (down 13.6% YoY).
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Consolidated Financial Results for the Six Months Ended September 30, 2025 3 The Ultraman IP continues to enjoy strong popularity both in Ja pan and overseas. However, during the interim period, revenue and profit temporarily declined due to a decrease in licensing income from key products—such as block toys and trading card-related items in the Chinese market. The main factors include the norma lization of sales for products that had previously contributed significantly due to a temporary hit in th e Chinese market, as well as a review of product offerings by local partners in response to IP diversification. Going forward, we aim to strengthen our earnings base by developing products aligned with market needs and building new partnerships. The breakdown by category is as follows. <License Revenue: ¥2,302 million (down 38.7% YoY)> (Unit: millions of yen) Apr.-Sep. 2024 (previous H1) Apr.-Sep. 2025 (current H1) Percentage change (%) Total 3,754 2,302 (38.7)% Overseas 3,170 1,815 (42.7)% China 2,899 1,441 (50.3)% North America, Asia and others 271 374 +38.0% Domestic 584 487 (16.5)% <Overseas> In the Chinese market, licensing revenue declined year-on-year due to the aforementioned impact. Meanwhile, as our global expansion accelerates, licensing agreements in regions such as North America and Asia have steadily increased, resulting in year-on-year growth. <Domestic> In Japan, licensing revenue declined during the period, primarily due to a reactionary decrease following the decrease in GRIDMAN-related revenue in the same period of the previous year. <MD (Product Sales) Revenue: ¥761 million (up 248.9% YoY)> (Unit: millions of yen) Apr.-Sep. 2024 (previous H1) Apr.-Sep. 2025 (current H1) Percentage change (%) Total 218 761 +248.9% Overseas - 219 - Domestic 218 542 +148.3% The expansion of the lineup of our in-house developed product, the Ultraman Card Game, led to an increase in MD (Product Sales) revenue both in Japan and overseas. Starting in July 2025, we launched sales of products for the Chinese market through the cross-border e-commerce platform “TMALL GLOBAL” and have since been steadily expanding our product lineup.
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Consolidated Financial Results for the Six Months Ended September 30, 2025 4 <Imaging and Event Revenue: ¥1,726 million (up 10.0% YoY)> ( U n i t : m i l l i o n s o f y e n ) Apr.- Sep. 2024 (previous H1) Apr.- Sep. 2025 (current H1) Percentage change (%) Total 1,569 1,726 +10.0% Overseas 478 496 +3.8% Domestic 1,091 1,229 +12.7% Revenue from imaging and event operations increased year-on-year during the interim period, primarily due to increase in audience attendance at the annual “Ultra Heroes EXPO 2025 Summer Festival” and the biennial “TSUBURAYA CONVENTION 2025”, held during the summer and autumn seasons respectively. As a result, net sales for the content and digital business se gment for interim consolidated accounting period was ¥7,538 million (down 5.7% YoY) and operating profit was ¥749 million (down 64.6% YoY). Amusement Equipment Business Segment During the interim period, sales of pachinko/pachislot (PS) multiple models featuring major IPs performed strongly. In addition, responding to increased production demand for models released in the previous fiscal year, total unit sales reached approximately 159,000 units (up 228.6% YoY). As a result, our mark et share of total units sold reached approximately 20.7% (according to our estimates). Sales heading into the third quarter are also progressing steadily. The latest title in the Evangelion series, NEON GENESIS EVANGELION -Memories of the beginning- , scheduled for release in December, is attracting significant market attention. To support long-term operation, we are conducting active prom otions across various media ch annels, including television commercials, web content, and social media. As a result, the amusement equipment business segment’s net sales for the interim consolidated accounting period was ¥87,825 million (up 136.1% YoY) and operating profit was ¥14,673 million (up 369.9% YoY). [PS Machine Unit Sales and Major Titles Sold] Apr.-Sep. 2024 (previous H1) Apr.-Sep. 2025 (current H1) Percentage change (%) Pachinko 20,961 units 69,569 units +231.9% Pachislot 27,675 units 90,233 units +226.0% Total 48,636 units 159,802 units +228.6% [Major Titles Sold in the First Half of the Fiscal Year] Classification Major titles Unit sales Pachinko e SHIN ULTRAMAN 69,000 units e Tokyo Ghoul e INUYASHA 3.0 Pachislot Ｌ Pachislot MOBILE SUIT GUNDAM SEED 90,000 units L ULTRAMAN Smart Pachislot Devil May Cry 5 STYLISH TRIBE L ZETTAI SHOGEKI - PLATONIC HEART- LB Pachislot Evangelion -The Door of Promises- L DARLING in the FRANXX Total 159,000 units
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Consolidated Financial Results for the Six Months Ended September 30, 2025 5 Other Businesses Other businesses posted net sales of ¥901 million and operating profit of ¥8 million for the interim consolidated accounting period. (2) Explanation Regarding Forward-Looking Statements Including Consolidated Earnings Forecasts We have revised the full-year earnings forecast for the fi scal year ending March 2026 from the figures announced on 13 May 2025. For details regarding the revision, please refer to the notice titled “Notice of Revision of Earnings Forecast for the Fiscal Year Ending March 2026” released today. Initiatives for Group IP Business Strategy In recent years, the Japanese-originated IP has gained hi gh recognition globally, with their international expansion progressing steadily. Japan's unique creative content—particula rly in anime, special effects, and gaming—has been well received in overseas markets and is being deployed in various forms across regions. Since its listing in 2003, our group has promoted a “IP-centric cyclical business model” and has accumulated extensive know- how in the IP business over the past 20 years. In the content and digital business, we have a long-standing track record of content development centered on Ultraman IP , along with experience in global expansion. In the amusement equipment business, we have built strong capabilities including sustained and positive partnerships with ma jor IP holders, expertise in acquiring hi gh-value IPs, product planning, and sales capabilities. Currently, we are exploring content development centered on MD(Merchandizing) both in Japan and overseas to maximize the value of our key IPs. In parallel, we are working to build a structure that enables business development across diverse content domains by leveraging the strengths of each business segment in a coordinated manner. We are also reviewing multiple strategic initiatives, and plan to announce a concrete group IP business strategy in May 2026 after finalizing the details. We will continue to steadily prep are for further maximizing IP value and accelerating global expansion. Shareholder Returns We regard the improvement of corporate value as an impo rtant management issue and have adopted a basic policy of paying dividends in line with profits. We recognize that continuous investment in business growth is essential for our group, which is developing our global content bus iness. We will return profits to shareholders while considering the balance with business investment, while realizing steady business growth and increased profits. We are also carefully considering year-end dividends based on revisions to our earnings forecasts for the current fiscal year. We will respond appropriately to realize stable shareholder returns while comprehensively considering future performance trends. (Note 1) Figures in this summary report are based on published figures for each company/organization or on our estimates. (Note 2) The names of products in this summary report are trademarks or registered trademarks of their respective companies.
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Consolidated Financial Results for the Six Months Ended September 30, 2025 6 (3) Overview of Financial Position (Assets) Current assets increased by ¥12,857 million from the end of the previous fiscal year to ¥82,698 million. This was mainly due to an increase in cash and cash equivalents and notes and trade receivables. Property, plant and equipment increased by ¥83 million from the end of the previous fiscal year to ¥10,314 million. Intangible assets increased by ¥331 million from the end of the previous fiscal year to ¥2,447 million. Investments and other assets decreased by ¥855 million from the end of the previous fiscal year to ¥15,910 million. This was mainly due to a decline in deferred tax assets included in “other.” As a result, assets increased by ¥12,417 million from the end of the previous fiscal year to ¥111,371 million. (Liabilities) Current liabilities increased by ¥7,725 million from the end of the previous fiscal year to ¥34,495 million. This was mainly due to an increase in trade payables and income taxes payable. Non-current liabilities decreased by ¥1,920 million from the end of the previous fiscal year to ¥14,015 million. This was mainly due to a decline in long-term borrowings. As a result, liabilities increased by ¥5,805 million from the end of the previous fiscal year to ¥48,511 million. (Net assets) Net assets increased by ¥6,612 million from the end of the previous fiscal year to ¥62,860 million. This was mainly due to growth in retained earnings. (Analysis of cash flows) Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the interim consolidated accounting period increased by ¥5,477 million from the end of the previous fiscal year to ¥36,332 million. (Cash flows from operating activities) Net cash provided by operating activities was ¥10,906 million, compared with net cash used of ¥1,269 million in the same period of the previous fiscal year. This was mainly due to ¥13,785 million in profit before income taxes, ¥3,672 million increase in trade payables, ¥3,412 million increase in inventories, ¥3,131 increase in trade receivables, ¥1,791 in income taxes paid and ¥936 million in depreciation. (Cash flows from investing activities) Net cash used in investing activities was ¥1,215 million, compared with net cash used of ¥1,334 million in the same period of the previous fiscal year. This was mainly due to purchase of non-current assets of ¥1,229 million, and loan advances of ¥270 million. (Cash flows from financing activities) Net cash used in financing activities was ¥4,222 million, compared with net cash used of ¥10,953 million in the same period of the previous fiscal year. This was mainly due to dividends paid of ¥3,108 million and repayments of long-term borrowings of ¥1,100 million.
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Consolidated Financial Results for the Six Months Ended September 30, 2025 7 2. Consolidated Financial Statements and Important Notes (1) Consolidated Balance Sheets (Unit: millions of yen) Previous consolidated fiscal year (As of March 31, 2025) Q2 of current consolidated fiscal year (As of September 30, 2025) Assets Current assets Cash and deposits 30,954 36,432 Notes and accounts receivable - trade, and contract assets 12,809 16,456 Electronically recorded monetary claims - operating 4,342 3,826 Merchandise and finished goods 697 1,642 Work in process 10,960 13,930 Raw materials and supplies 3,733 3,055 Merchandise rights 3,323 3,498 Other 3,026 3,873 Allowance for doubtful accounts (7) (17) Total current assets 69,841 82,698 Non-current assets Property, plant and equipment Land 5,664 5,605 Other 4,565 4,708 Total property, plant and equipment 10,230 10,314 Intangible assets Goodwill 1,115 974 Other 1,001 1,472 Total intangible assets 2,116 2,447 Investments and other assets Investment securities 7,831 7,688 Long-term loans receivable 1,354 1,497 Other 8,413 7,535 Allowance for doubtful accounts (833) (810) Total investments and other assets 16,765 15,910 Total non-current assets 29,112 28,672 Total assets 98,953 111,371 Liabilities Current liabilities Notes and accounts payable - trade 13,715 17,081 Electronically recorded obligations - operating 1,235 1,590 Short-term borrowings 900 906 Current portion of long-term borrowings 2,207 2,210 Income taxes payable 1,616 3,300 Provision for bonuses 441 607 Provision for bonuses for directors (and other officers) 195 91 Other 6,458 8,706 Total current liabilities 26,770 34,495 Non-current liabilities Long-term borrowings 8,033 6,930 Provision for retirement benefits for directors (and other officers) 31 32 Retirement benefit liability 2,342 2,373 Asset retirement obligations 1,302 1,323 Other 4,226 3,355 Total non-current liabilities 15,935 14,015 Total liabilities 42,706 48,511
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Consolidated Financial Results for the Six Months Ended September 30, 2025 8 (Unit: millions of yen) Previous consolidated fiscal year (As of March 31, 2025) Q2 of current consolidated fiscal year (As of September 30, 2025) Net assets Shareholders’ equity Share capital 7,948 7,948 Capital surplus 9,289 9,299 Retained earnings 37,520 43,962 Treasury shares (3,415) (3,400) Total shareholders’ equity 51,342 57,809 Accumulated other comprehensive income Valuation difference on available-for-sale securities (356) (328) Foreign currency translation adjustment (8) 0 Remeasurements of defined benefit plans 65 58 Total accumulated other comprehensive income (298) (268) Share acquisition rights 306 317 Non-controlling interests 4,897 5,001 Total net assets 56,247 62,860 Total liabilities and net assets 98,953 111,371
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Consolidated Financial Results for the Six Months Ended September 30, 2025 9 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income consolidated Statements of Income (Unit: millions of yen) Q2 of previous consolidated fiscal year (April 1, 2024 to September 30, 2024) Q2 of current consolidated fiscal year (April 1, 2025 to September 30, 2025) Net sales 45,760 95,953 Cost of sales 33,267 71,570 Gross profit 12,492 24,383 Selling, general and administrative expenses 8,421 10,788 Operating profit 4,071 13,595 Non-operating income Interest income 10 25 Dividend income 8 231 Purchase discounts 19 49 Share of profit of entities accounted for using equity method 1,178 6 Distributions from investments 6 15 Other 111 99 Total non-operating income 1,333 427 Non-operating expenses Interest expenses 41 74 Foreign exchange losses 1 1 Depreciation 13 10 Other 18 31 Total non-operating expenses 74 118 Ordinary profit 5,330 13,904 Extraordinary income Gain on sale of non-current assets 0 54 Gain on reversal of share acquisition rights 34 - Other - 0 Total Extraordinary income 34 55 Extraordinary losses Loss on retirement of non-current assets 3 12 Impairment - 161 Other - 0 Total extraordinary losses 3 173 Profit before income taxes 5,362 13,785 Income taxes 1,348 4,129 Profit 4,013 9,656 Profit attributable to non-controlling interests 1,190 104 Profit attributable to owners of parent 2,823 9,552
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Consolidated Financial Results for the Six Months Ended September 30, 2025 10 consolidated Statements of Income (Unit: millions of yen) Q2 of previous consolidated fiscal year (April 1, 2024 to September 30, 2024) Q2 of current consolidated fiscal year (April 1, 2025 to September 30, 2025) Profit 4,013 9,656 Other comprehensive income Valuation difference on available-for-sale securities 0 27 Foreign currency translation adjustment (2) 9 Remeasurements of defined benefit plans, net of tax (2) (7) Share of other comprehensive income of entities accounted for using equity method 0 - Total other comprehensive income (3) 29 Quarterly comprehensive income 4,009 9,686 Comprehensive income attributable to Quarterly comprehensive income attributable to owners of parent 2,818 9,582 Quarterly comprehensive income rela ted to non-controlling interests 1,191 104
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Consolidated Financial Results for the Six Months Ended September 30, 2025 11 (3) Consolidated Statements of Cash Flows (Unit: millions of yen) Q2 of previous consolidated fiscal year April 1, 2024 to September 30, 2024) Q2 of current consolidated fiscal year (April 1, 2025 to September 30, 2025) Cash flows from operating activities Profit (loss) before income taxes 5,362 13,785 Depreciation 505 936 Impairment losses - 161 Amortization of goodwill 140 140 Investments in capital depreciation 245 156 Increase (decrease) in allowance for doubtful accounts (30) (12) Increase (decrease) in provision for bonuses (203) 165 Increase (decrease) in provision for bonuses for directors (and other officers) (216) (103) Increase (decrease) in retirement benefit liability 35 24 Interest and dividend income (18) (256) Interest expenses 41 74 Share of loss (profit) of entities accounted for using equity method (1,178) (6) Decrease (increase) in tr ade receivables 1,889 (3,131) Decrease (increase) in inventories (4,528) (3,412) Decrease (increase) in accoun ts receivable - other 829 (646) Increase (decrease) in trade payables (2,370) 3,672 Increase (decrease) in liabilities related to payable transactions 903 469 Increase/decrease in consumption taxes payable/consumption taxes refund receivable 51 766 Other, net (263) (267) Subtotal 1,191 12,516 Interest and dividends received 314 257 Interest paid (41) (74) Income taxes refund (paid) (2,734) (1,791) Net cash provided by (used in) operating activities (1,269) 10,906 Cash flows from investing activities Purchase of property, plant and equipment (434) (832) Proceeds from sale of property, plant and equipment 1 120 Purchase of intangible assets (121) (396) Purchase of investment securities (23) (6) Proceeds from sale of investment securities 149 18 Purchase of shares of subsidiaries and associates (337) - Purchase of shares of acquisition of equity method affiliates (8) - Loan advances (162) (270) Proceeds from collection of loans receivable 46 128 Other, net (443) 23 Net cash provided by (used in) investing activities (1,334) (1,215) Cash flows from financing activities Net increase (decrease) in short-term borrowings 2,000 6 Repayments of long-term borrowings (1,204) (1,100) Purchase of treasury shares (6,310) (0) Dividends paid (2,613) (3,108) Purchase of shares of subsidiaries not resulting in change in scope of consolidation (3,037) - Other, net 212 (20) Cash flows provided by (used in) investing activities (10,953) (4,222) Effect of exchange rate change on cash and cash equivalents 1 7 Net increase (decrease) in cash and cash equivalents (13,555) 5,477 Cash and cash equivalents at beginning of period 34,814 30,854 Cash and cash equivalents at end of period 21,258 36,332
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Consolidated Financial Results for the Six Months Ended September 30, 2025 12 (4) Notes Regarding the Six Months Co nsolidated Financial Statements (Notes Regarding the Operation of the Company as a Going Concern) Not applicable. (Notes Regarding Occurrence of Significant Change in Amount of Shareholders’ Equity) Not applicable. (Application of the Accounting Method Specific to Consolidated Financial Statements for the First Half) Calculation of tax expenses Tax expenses are calculated by reasonably estimating the effective tax rate after the application of tax effect accounting to profit before income taxes for the cons olidated fiscal year, including the first half of the fiscal year under review, and multiplying the quarterly profit or loss before income taxes by this estimated effective tax rate.
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Consolidated Financial Results for the Six Months Ended September 30, 2025 13 (Segment Information, etc.) [Segment Information] I. Six months ended September 30, 2024 (April 1, 2024 - September 30, 2024) Information on net sales and profit (loss) by reporting segment (Unit: millions of yen) Reporting segments Other (Note 1) Total Adjusted amount (Note 2) Carrying value (Note 3) Content and digital business Amusement equipment business Total Net sales Net sales to external customers 7,833 37,092 44,925 834 45,760 - 45,760 Intersegment net sales or transfers 163 103 267 0 268 (268) - Total 7,996 37,196 45,192 835 46,028 (268) 45,760 Segment profit (loss) 2,117 3, 122 5,239 1 5,241 (1,170) 4,071 (Note) 1. “Other” is a business segment that is not include d in reporting segments and includes fitness business, etc. 2. ¥(1,170) million in adjustments to segment profit includes the elimination of intersegment transactions of ¥(5) million and ¥(1,164) million in corporate expenses that are not allocated to individual reporting segments. 3. Segment profit has been adjusted with the operating profit of the quarterly consolidated statement of income. II. Six months ended September 30, 2025 (April 1, 2025 - September 30, 2025) i. Information on net sales and profit (loss) by reporting segment (Unit: millions of yen) Reporting segments Other (Note 1) Total Adjusted amount (Note 2) Carrying value (Note 3) Content and digital business Amusement equipment business Total Net sales Net sales to external customers 7,320 87,736 95,057 896 95,953 - 95,953 Intersegment net sales or transfers 217 88 305 5 311 (311) - Total 7,538 87,825 95,363 901 96,265 (311) 95,953 Segment profit (loss) 749 14,673 15,423 8 15,431 (1,836) 13,595 (Note) 1. “Other” is a business segment that is not included in reporting segments and includes fitness business, etc. 2. ¥(1,836) million in adjustments to segment profit includes the elimination of intersegment transactions of ¥(94) million and ¥(1,741) million for corporate expenses that are not allocated to individual reporting segments. 3. Segment profit has been adjusted with the operating profit of the quarterly consolidated statement of income. ii. Changes in reporting segments Effective from the previous fiscal year, the segment name that had previously been classified as the “PS business” has been changed to the “Amusement equipment business.” This change was only a change in the name of the reporting segment and had no impact on segment information. Segment information for the first half of the previous fiscal year is also presented under the new name.