The Second Quarterly Report
For the Six Months Ended September 30, 2003

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 Subsidiaries
As of September 30, 2003 and 2002

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
OthersProperty, Plant and Equipment, at Cost:
LandBuildings and structures
Machinery and equipment
Construction in progressLess−Accumulated depreciation

Investments and Other Assets:
Investment securities
Investment in unconsolidated subsidiaries and affiliates
Leasehold deposits and others
Deferred income taxes −non-current
Total Assets

2003

2002

Thousands ofU.S. dollars

2003¥16,388865
16,137
(312)
7,505
1,358
3,823
45,764¥14,887
1,809
13,611
(112)
8,584
1,138
4,025
43,942$147,311
7,773
145,048(2,809)67,463
12,20434,369411,359

3,414
6,642
21,720186
31,962(22,925)
9,037

3,412
6,573
20,933217
31,135(21,920)
9,215

30,68359,707
195,234
1,678
287,302(206,071)
81,231

1,059
101
787
614
2,561
57,362

2,628
97
955
1,680
5,360
58,517

9,519
907
7,071
5,526
23,023515,613

Thousands of
U.S. dollars

Millions of yen

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent Liabilities:
Short-term borrowings
Current portion of long-term debt
Trade notes and accounts payable
Accrued expenses
Accrued income taxes
OtherLong-Term Liabilities:
Long-term debt, less current portion
Severance and retirement allowances:
Employees
Directors
Deferred income taxes for revaluation of land
OtherMinority Interests
Shareholders’ Equity:
Common stock, no par
Authorized 60,000,000 shares
Issued 20,419,299 shares at September, 2003 and 2002
Additional paid-in capital
Retained earnings
Revaluation reserve for land, net of tax
Net unrealized holding losses on securities
Foreign currency translation adjustmentsLess−treasury stock, at cost
6,963 shares at September 30, 2003 and 3,681 shares at September 30, 2002
Total Liabilities and Shareholders' Equity2003

2002

2003

¥14,424
333
5,551
6,255
584
1,200
28,347¥10,650
10,593
5,351
6,007
375
814
33,790$129,653
2,993
49,901
56,225
5,252
10,784
254,808

6,000

1,084

53,935

1,013
403
18
1,270
8,704

1,502
289
18
1,654
4,547

9,102
3,623
159
11,421
78,240

80

25

717

2,990
2,936
15,92626
25(1,663)
20,2402,990
2,936
15,42325(45)(1,168)
20,161

26,876
26,393
143,158
233
228(14,956)
181,932(9)
20,231
57,362(6)
20,15558,517(84)
181,848515,613

Consolidated Statements of Operations (Unaudited)
TOMY Company, Ltd. and Subsidiaries
For the six months ended September 30, 2003 and 2002

Millions of yen

Thousands ofU.S. dollars

2003¥38,742
23,496
15,246

2002¥33,834
22,004
11,83011,405
3,841

11,435395

102,518
34,52428(158)
1(2)
(81)
−
(194)
31(375)64(125)
4(9)
(109)
(62)
(266)
89(414)252(1,423)10(16)(728)−(1,741)275(3,371)

3,466

(19)

31,153

Provision for Income Taxes−current−deferred702
852

470(461)

6,310
7,655

Minority Interest in Subsidiaries(17)(14)(157)

Net Income (Loss)

1,895(42)17,031Per Share of Common Stock:
Net Inocme (loss):
Basic
DilutedCash dividends, applicable to the year

¥92.82−¥0.00(¥2.07)
−
¥0.00

$0.83
−
$0.00

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

Income (Loss) before Income Taxes

2003$348,242
211,200
137,042

Consolidated Statements of Shareholders’ Equity (Unaudited)
TOMY Company, Ltd. and Subsidiaries
As of September 30, 2003 and 2002

Millions of yen
Commonstock

Balance at March 31, 2003

¥2,990Additional
paid-incapital¥2,936

Retainedearnings¥14,078

Treasurystock(¥8)

Net gains and losses
not recognized in thestatements of operations(¥1,518)

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net incomeBonuses paid to directors & corporate auditors
Tresury stock
Balance at September 30, 2003

1,895
(47)
¥2,990¥2,936¥15,926

(1)
(¥9)

Total

¥18,478

144(238)

144(238)(¥1,612)

1,895(47)(1)¥20,231

Millions of yen
Commonstock

Balance at March 31, 2002

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

Retainedearnings¥15,606

Treasury
stock

(¥3)

Net gains and losses
not recognized in thestatements of operations(¥988)

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net loss
Dividends declared
Bonuses paid to directors & corporate auditors
Equity in subsidiaries included in consolidation at beginning of year
Tresury stock
Balance at September 30, 2002

(42)
(102)
(32)
(7)
¥2,990¥2,936¥15,423

(3)
(¥6)

Total

¥20,5415(205)

5(205)(¥1,188)

(42)
(102)
(32)
(7)
(3)
¥20,155

Thousands of U.S. dollars
Commonstock

Balance at March 31, 2003

$26,876

Additional
paid-in
capital$26,393

Retainedearnings$126,546

Treasurystock($73)

Unrealized holding gains on securities arising during the period
Foreign currency translation adjustments
Net income
Bonuses paid to directors & corporate auditors
Tresury stock
Balance at September 30, 2003

17,031(419)$26,876$26,393$143,158

(11)
($84)

Net gains and losses
not recognized in thestatements of operations

Total($13,648)$166,094

1,292(2,139)1,292(2,139)($14,495)

17,031(419)(11)$181,848

Consolidated Statements of Cash Flows (Unaudited)
TOMY Company, Ltd. and Subsidiaries
For the six months ended September 30, 2003 and 2002

Millions of yen

Cash Flows from Operating Activities:
Income (loss) before income taxes
Depreciation and amortization
Interest and dividend income
Interest expenses
Increase in trade notes and accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in trade notes and accounts payable
Other, net
Sub totalInterest and dividend received
Interest paid
Income tax paid
Net cash used in operating activities

2003

2002

Thousands ofU.S. dollars

2003¥3,466
1,087
(28)
158
(6,552)(2,320)
(398)
1,512
582
(2,493)27(160)(442)(3,068)

(¥19)
1,035
(64)
125
(2,520)(3,300)
(70)
1,022
725
(3,066)61(155)(249)(3,409)$31,153
9,768
(252)
1,423
(58,892)(20,851)(3,579)13,593
5,232(22,405)241(1,435)(3,973)(27,572)

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 activities(1,201)
(666)
3,437
3
1,573

(1,271)
(216)
560
(206)
(1,133)(10,798)(5,984)30,89325
14,136

Cash Flows from Financing Activities:
Proceeds from short-term borrowings, net
Repayment of long-term debt
Proceeds from long-term debt
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of Exchange Rate on Cash and Cash Equivalents
Net decrease in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of period
Net Increase in cash and cash equivalents due to change of consolidated subsidiaries
Cash and Cash Equivalents at End of Period

5,286(10,130)
1,300
(1)
(1)
(3,546)(84)(5,125)21,513−¥16,388

3,673(616)
800
(106)
(2)
3,749
(138)
(931)
15,79028¥14,887

47,514(91,053)
11,685(9)(10)(31,873)(755)(46,064)
193,375−$147,311

Business Segment Information (Unaudited)
For the six months ended September 30, 2003 and 2002
The Group operates principally in the toy manufacturing and marketing business.

2003
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Toy

2002
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Toy

2003
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Toy¥37,464
11
37,47533,157¥4,318¥37,246¥32,71424
32,73831,711¥1,027¥35,301$336,752
96
336,848
298,038$38,810$334,791

OthersMillions of yen
Total
Eliminations Consolidated¥1,278
1,207
2,485
2,259
¥226
¥4,504

Others¥38,742
1,218
39,96035,416¥4,544¥41,750(1,218)(1,218)(515)(¥703)¥15,612¥38,742
38,742
34,901¥3,841¥57,362

Millions of yen
Total
Eliminations Consolidated¥1,120
1,212
2,332
2,140
¥192
¥4,455¥33,834
1,236
35,07033,851¥1,219¥39,756(1,236)(1,236)(412)(¥824)¥18,761¥33,834
33,83433,439¥395¥58,517

Thousands of U.S. Dollars
OthersTotal
Eliminations Consolidated$11,490
10,852
22,342
20,309$2,033$40,487$348,242
10,948359,190318,347$40,843$375,278(10,948)(10,948)(4,629)($6,319)$140,335$348,242
348,242
313,718$34,524$515,613

Operations by Geographic Area (Unaudited)
For the six months ended September 30, 2003 and 2002
Sales and operating income are attributed to countries, based on location of business assets.

2003
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Japan

2002
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Japan

2003
Net Sales:
Sales to customers
Inter segment sales
Total
Operating expenses
Operating income
Total assets

Japan¥28,156
2,425
30,581
26,787¥3,794¥30,860¥24,230
1,840
26,07025,371¥699¥27,262$253,085
21,800274,885
240,783$34,102$277,391

Europe¥6,023
30
6,053
5,795
¥258
¥8,093

Europe¥5,851
2
5,853
5,804
¥49
¥8,664

Europe$54,142
267
54,40952,091$2,318$72,744

Millions of yen
OthersAsia¥1,702
6,366
8,068
7,874
¥194
¥6,994

Millions of yen
OthersAsia¥1,627
7,730
9,357
8,927
¥430
¥7,492Asia¥2,861
1
2,862
2,492
¥370
¥2,520¥2,126
−
2126
1890
¥236
¥2,071

Total¥38,742
8,822
47,56442,948¥4,616¥48,467

Total¥33,834
9,572
43,40641,992¥1,414¥45,489

Thousands of U.S. Dollars
OthersTotal$15,300
57,22572,52570,778$1,747$62,865$25,715525,72022,398$3,322$22,656$348,242
79,297427,539
386,050$41,489$435,656

Eliminations

Consolidated(8,822)(8,822)(8,047)(¥775)¥8,895¥38,742
38,742
34,901¥3,841¥57,362

Eliminations

Consolidated(9,572)(9,572)(8,553)(¥1,019)¥13,028¥33,834
33,83433,439¥395¥58,517

Eliminations

Consolidated(79,297)(79,297)(72,332)($6,965)$79,957$348,242
348,242
313,718$34,524$515,613

Overseas Sales and the Ratios (Unaudited)For the six months ended September 30, 2003 and 2002
Overseas sales consist of export sales by TOMY Company, Ltd., and domestic subsidiaries and sales by consolidated foreign subsidiaries.

2003
Others¥4,693−
12.1%

Millions of yen

Overseas sales
Consolidated sales
Overseas sales ratio

Europe¥6,367
−
16.4%

Total
¥11,060¥38,742
28.5%

Overseas sales
Consolidated sales
Overseas sales ratio

Thousands of U.S.Dollars
2003
EuropeOthersTotal$57,231$42,188$99,419−−$348,242
16.4%
12.1%
28.5%

Europe¥7,225
−
21.4%

2002
Others¥4,003−11.8%

Total¥11,228¥33,83433.2%

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 September 30, 2003, which was ￥111.25 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.