The Annual Report
For the Year Ended March 31, 2005

TOMY COMPANY, LTD.
9-10 Tateishi 7-chome, Katsushika-ku, Tokyo 124-8511, Japan
Tel:81-3-3693-9033 Fax:81-3-3694-7403
Web site: http://www.tomy.com/ir

Consolidated Balance Sheets (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIESAs of March 31, 2005 and 2004

Millions of yen

ASSETS
Current Assets:
Cash and cash equivalents
Marketable securities
Trade notes and accounts receivable
Less allowance for doubtful receivables
Inventories
Deferred income taxes －current
Other

Property, Plant and Equipment, at Cost:Land
Buildings and structures
Machinery and equipment
Construction in progress
Less accumulated depreciation

Investments and Other Assets:
Investment securities
Investment in unconsolidated subsidiaries and affiliates
Lease deposits and other
Deferred income taxes －non current
Total Assets

2005

2004

Thousands of
U.S. dollars

2005¥22,566
565
11,543
(208)
6,596
1,420
2,430
44,912¥15,349
565
10,134
(256)
5,521
1,455
3,838
36,606$210,137
5,259
107,488(1,940)61,417
13,227
22,628418,216

3,409
6,154
22,132
133
31,828(24,035)
7,793

3,4126,594
21,70136
31,743(23,462)
8,281

31,74557,306
206,087
1,243
296,381(223,812)
72,569

928
90
1,080
704
2,802
55,507

997
219
945
520
2,681
47,5688,645
841
10,0486,559
26,093516,878

Thousands ofU.S. dollars

Millions of yen

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent Liabilities:
Short-term borrowings
Current portion of long-term debt
Trade notes and accounts payable
Other payables
Accrued expenses
Accrued income taxes
OtherLong-Term Liabilities:
Long-term debt, less current portionSeverance and retirement allowances:
Employees
Directors
Deferred income taxes for revaluation of land
Other
Total liabilities
Minority Interests:
Shareholders’ Equity:
Common stock, no par
Authorized 60,000,000 shares
Issued 20,419,299 shares at March 31, 2005 and 2004
Additional paid-in capital
Retained earnings
Revaluation reserve for land, net of tax
Net unrealized holding gains on securities
Foreign currency translation adjustments
Less treasury stock, at cost
411,353 shares at March 31, 2005 and 8,763 shares at March 31, 2004
Total shareholders' equity
Total Liabilities and Shareholders' Equity

2005

2004

2005

¥4,451
2,411
4,449
3,845
2,757
1,742
1,027
20,682¥4,407
551
3,731
3,801
2,868
329
2,353
18,040$41,448
22,44841,42635,80025,675
16,225
9,568
192,590

10,225

5,698

95,211

1,152
489
18
1,253
13,13733,819

1,080
436
18
1,191
8,423
26,463

10,7304,555
165
11,671
122,332
314,922

368

267

3,426

2,990
2,936
17,75926
136(1,789)22,0582,990
2,936
16,53326
135(1,770)20,85027,842
27,342
165,377
242
1,263(16,661)
205,405(738)
21,32055,507(12)
20,83847,568(6,875)
198,530
516,878

Consolidated Statements of Operations (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIES
Years ended March 31, 2005 and 2004

Millions of yen

Thousands of
U.S. dollars

2005¥83,274
52,11731,157

2004¥82,520
50,94031,58026,696
4,461

25,544
6,036

248,586
41,54328(195)13(50)
(135)
(65)
(104)
(200)
(73)
(781)

42(286)
2(33)
(173)
(19)
(223)
(1,000)(181)(1,871)257(1,817)117(467)(1,260)(604)(973)(1,862)(668)(7,277)

Income before Income Taxes

3,680

4,165

34,266

Provision for Income Taxes - current- deferred

2,099
(145)

840
777

19,540(1,350)

46

46

430

1,680

2,502

15,646¥74.9865.52¥15.00¥114.52－¥10.00

$0.70
0.61
$0.14

Net Sales
Cost of Sales
Gross profit
Selling, General and Administrative Expenses
Operating income
Other Income (Expenses):
Interest and dividend income
Interest expense
Gain on sale of fixed assets
Loss on disposal of plant and equipment
Cash discounts
Impairment loss on investment securities
Foreign exchange loss, net
Loss on voluntary recall of products
Other, net

Minority Interest in Subsidiaries
Net Income

Per Share of Common Stock:
Net income:
Basic
DilutedCash dividends, applicable to the year2005
$775,439
485,310290,129

Consolidated Statements of Shareholders’ Equity (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIES
Years ended March 31, 2005 and 2004

Millions of yen

Balance at March 31, 2003

Commonstock¥2,990Additional
paid-in
capital¥2,936

Retainedearnings¥14,078

Treasurystock(¥8)

Net gains and losses
not recognized in thestatements of operations

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net income
Bonuses paid to directors & corporate auditors
Treasury stock
Balance at March 31, 2004

2,502(47)¥2,990¥2,936¥16,533(4)(¥12)

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net income
Dividends declared
Bonuses paid to directors & corporate auditors
Equity in subsidiaries included in consolidation at beginning of year
Treasury stock
Balance at March 31, 2005

1,680(306)(151)
3¥2,990¥2,936¥17,759(726)(¥738)

Total(¥1,518)¥18,478

253(344)253(344)(¥1,609)

2,502
(47)
(4)
¥20,838

1(19)

1(19)

(¥1,627)

1,680
(306)
(151)
3(726)¥21,320

Thousands of U.S. dollars

Balance at March 31, 2004

Commonstock$27,842

Additional
paid-in
capital$27,342

Retainedearnings$153,957

Treasurystock($114)

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net income
Dividends declared
Bonuses paid to directors & corporate auditors
Equity in subsidiaries included in consolidation at beginning of year
Treasury stock
Balance at March 31, 2005

15,646(2,851)(1,406)31$27,842$27,342$165,377(6,761)($6,875)

Net gains and losses
not recognized in thestatements of operations

Total($14,986)$194,041

4(174)

4(174)($15,156)

15,646(2,851)(1,406)31(6,761)$198,530

Consolidated Statements of Cash Flows (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIES
Years ended March 31, 2005 and 2004

Millions of yen

Cash Flows from Operating Activities:
Income before income taxesDepreciation and amortization
Interest and dividend income
Interest expense
Increase in trade notes and accounts receivable
Increase in inventories
Decrease in prepaid expenses
Increase (decrease) in trade notes and accounts payable
Other, net
Sub totalInterest and dividend received
Interest paid
Income tax paid
Net cash provided by operating activities
Cash Flows from Investing Activities:
Purchase of property, plant and equipment
Purchase of marketable and investment securities
Proceeds from sales of marketable and investment securities
Other, net
Net cash provided by (used in) investing activitiesCash Flows from Financing Activities:
Repayment of short-term borrowings, net
Repayment of long-term debt
Proceeds from long-term debt
Redemption of the convertible unsecured bonds
Dividends paid
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Effect of Exchange Rate on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of period
Net Increase in Cash and Cash Equivalents due to Change in Consolidated Subsidiaries
Cash and Cash Equivalents at End of Period20052004Thousands of
U.S. dollars

2005¥3,680
1,541
(28)
195
(1,243)
(962)
127
616
217
4,143
28
(227)
(730)
3,214

¥4,165
2,256
(42)
286
(555)
(314)
214
(350)
1,570
7,230
44(282)
(850)
6,142

$34,266
14,353(257)
1,817(11,575)(8,961)
1,178
5,741
2,013
38,575256(2,111)(6,797)29,923(1,137)(1,067)
1,071(234)(1,367)(1,715)(1,685)
4,982
(133)
1,449

(10,584)(9,931)
9,976(2,189)(12,728)

(33)
(613)
7,000
－
(307)
(726)
715,392(93)
7,146
15,34971¥22,566(4,749)(349)
1,400(9,965)(3)(4)
107(13,563)(192)(6,164)
21,513－¥15,349(311)(5,709)65,183－(2,860)(6,761)
672
50,214(864)
66,545
142,931661$210,137

Business Segment Information (Unaudited)Years ended March 31, 2005 and 2004
The Group operates principally in the toy manufacturing and marketing business.

2005
Net Sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income
Total assets
Depreciation
Capital expenditure

Toy¥80,956
1980,97575,200
5,775
33,478
1,389
1,154

2004
Net Sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income
Total assets
Depreciation
Capital expenditure

Toy

2005
Net Sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income
Total assets
Depreciation
Capital expenditure

Toy¥79,98422
80,006
72,9807,026
31,6262,091
1,644$753,856173
754,029
700,255
53,774
311,746
12,936
10,750

OthersMillions of yen
Total
Eliminations Consolidated¥2,318
2,569
4,887
4,656
231
4,002
86
47
Others¥83,274
2,588
85,86279,856
6,006
37,4801,475
1,201(2,588)(2,588)(1,043)(1,545)18,02766
88¥83,274
83,27478,813
4,461
55,507
1,541
1,289

Millions of yen
Total
Eliminations Consolidated¥2,536
2,616
5,152
4,729
423
4,435
98
43

¥82,520
2,638
85,15877,7097,449
36,061
2,189
1,687(2,638)(2,638)(1,225)(1,413)
11,50767
28¥82,520
82,52076,484
6,036
47,5682,256
1,715

Thousands of U.S. Dollars
OthersTotal
Eliminations Consolidated$21,583
23,92545,50843,354
2,154
37,262803
436$775,439
24,098799,537
743,60955,928349,008
13,73911,186(24,098)(24,098)(9,713)(14,385)
167,870614
818$775,439
775,439
733,896
41,543516,878
14,353
12,004

Operations by Geographic Area (Unaudited)Years ended March 31, 2005 and 2004
Sales and operating income are attributed to countries, based on location of business assets.

2005
Net sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income (loss)
Total assetsJapan2004
Net sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income (loss)
Total assets

Japan2005
Net sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income (loss)
Total assets

Japan¥64,299
2,548
66,84759,862
6,985
31,527¥62,294
4,101
66,39559,235
7,160
28,523$598,751
23,727
622,478
557,430
65,048
293,575

Europe¥12,832
14
12,846
12,586260
6,250

Europe¥12,76140
12,801
12,432369
5,118Europe$119,485
126
119,611
117,196
2,415
58,203

North America

Millions of yenAsia¥3,198
0
3,198
4,020
(822)
1,502

¥2,945
14,345
17,29017,488(198)
6,684

North America

Millions of yen
Asia¥4,397
1
4,398
4,381
17
1,104

¥3,068
12,221
15,28915,295
(6)
4,973

Total
¥83,274
16,907100,181
93,956
6,225
45,963

Total¥82,520
16,36398,883
91,343
7,540
39,718

Thousands of U.S. Dollars
North America
Asia
Total
$29,776
029,77637,438(7,662)
13,987$27,427
133,582
161,009
162,847(1,838)62,237$775,439
157,435
932,874874,91157,963428,002

Eliminations

Consolidated(16,907)(16,907)(15,143)(1,764)
9,544¥83,274
83,27478,813
4,461
55,507

Eliminations

Consolidated(16,363)(16,363)(14,859)(1,504)
7,850¥82,520
82,52076,484
6,036
47,568Eliminations

Consolidated(157,435)(157,435)(141,015)(16,420)88,876$775,439
775,439
733,896
41,543516,878

Overseas sales and the ratios (Unaudited)Years ended March 31, 2005 and 2004
Overseas sales consist of export sales by TOMY Company, Ltd., and domestic subsidiaries and sales by consolidated foreign subsidiaries.
Millions of yenOverseas sales
Consolidated sales
Overseas sales ratio

2005
EuropeNorth America¥13,600¥3,484
－－
16.3%
4.2%

Asia
¥3,204－
3.9%

Total¥20,288¥83,274
24.4%

Overseas sales
Consolidated sales
Overseas sales ratio

Thousands of U.S.Dollars
2005
EuropeNorth America
Asia$126,642$32,447$29,833
－－－
16.3%
4.2%
3.9%

Total
$188,922$775,439
24.4%

2004
EuropeNorth America¥13,376¥4,948
16.2%
6.0%

Asia
¥2,924
3.5%

Total¥21,248¥82,520
25.7%

Notes to Consolidated Financial Statements
1. BASIS OF PRESENTATIONTOMY Company, Ltd., and its consolidated domestic subsidiaries maintain their official accounting records inJapanese yen and in accordance with the provisions set forth in the Japanese Commercial Code and accounting
principles and practices generally accepted in Japan. The accounts of overseas subsidiaries are based on theiraccounting records maintained in conformity with generally accepted accounting principles and practices
prevailing in the respective countries of domicile. Certain accounting principles and practices generally acceptedin Japan are different from International Accounting Standards and standards in other countries in certain respects
as to application and disclosure requirements.
All amounts are unaudited.
2. BASIS OF TRANSLATING CONSOLIDATED FINANCIAL STATEMENTS
The translations of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers,using the prevailing exchange rate at March 31, 2005, which was ￥107.39 to U.S.$1.00. The convenience translations
should not be construed as representations that the Japanese yen amounts have been, could have been, or could in thefuture be, converted into U.S. dollars at this or any other rate of exchange.