The Second Quarterly Report
For the Six Months Ended September 30, 2004

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 September 30, 2004 and 2003

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: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
Leasehold deposits and other
Deferred income taxes −non current
Total Assets

2004

2003

Thousands ofU.S. dollars

2004¥18,455
565
14,774
(343)
7,816
1,447
3,614
46,328¥16,388865
16,137
(312)
7,505
1,358
3,823
45,764$166,185
5,085
133,039(3,092)70,385
13,03432,550417,186

3,408
6,559
22,047145
32,159(24,090)
8,069

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

30,68959,063
198,534
1,308
289,594(216,935)
72,659

907
87
1,070
744
2,808
57,205

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

8,170
784
9,629
6,703
25,286515,131

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
OthersLong-Term Liabilities:Long-term debt, less current portion
Severance retirement allowances:
Employees
Directors
Deferred income taxes for revaluation of land
OthersMinority Interests
Shareholders’ Equity:
Common stock, no par
Authorized 60,000,000 shares
Issued 20,419,299 shares at September 30, 2004 and 2003
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
10,173 shares at September 30, 2004 and 6,963 shares at September 30, 2003
Total Liabilities and Shareholders' Equity

2004

2004

2003

¥4,965
913
5,806
3,829
2,813
843
1,629
20,798¥14,424
333
5,551
3,435
2,820
584
1,200
28,347$44,7128,223
52,28734,481
25,332
7,594
14,662
187,291

12,0296,000

108,319

1,123
449
18
1,227
14,846

1,013
403
18
1,270
8,704

10,1164,040
159
11,051
133,685

294

80

2,645

2,990
2,936
17,01826
84(1,772)
21,2822,990
2,936
15,92626
25(1,663)
20,24026,924
26,440153,245234
760(15,959)
191,644(15)
21,26757,205(9)20,231
57,362(134)
191,510515,131

Consolidated Statements of Operations (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIESFor the six months ended September 30, 2004 and 2003

Thousands ofU.S. dollars

Millions of yen

2004¥37,851
23,76014,091

2003¥38,742
23,496
15,246

2004$340,845
213,952
126,893

12,241
1,850

11,405
3,841

110,234
16,65920(82)
4(16)
(57)
(0)
98(200)12(221)28(158)
1(2)
(81)
−
(194)
−
31(375)

177(737)
33(145)
(513)
(4)
879
(1,801)120(1,991)

Income before Income Taxes

1,629

3,466

14,668Provision for Income Taxes - current- deferred

921
(172)

702
852

8,295
(1,554)

Minority Interest in Subsidiaries

(44)

(17)

(397)

Net Income836

1,895

7,530

¥40.9737.13¥5.00¥92.82
−
¥0.00

$0.37
0.33
$0.05

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 securitiesForeign exchange gain (loss), net
Loss on voluntary recall of products
Others, net

Per Share of Common Stock:
Net Income:
Basic
DilutedCash dividends, applicable to the year

Consolidated Statements of Shareholders’ Equity (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIESAs of September 30, 2004 and 2003

Millions of yen
Commonstock

Balance at March 31, 2004

¥2,990Additional
paid-incapital¥2,936

Retainedearnings¥16,533

Treasurystock(¥12)

Net gains and losses
not recognized in thestatements of operations(¥1,609)

Unrealized holding losses on securities arising during the period
Foreign currency translation adjustments
Net income
Dividends declared
Bonuses paid to directors & corporate auditors
Equity in subsidiaries excluded in consolidation at beginning of year
Tresury stock
Balance at September 30, 2004

836
(204)
(150)
3
¥2,990¥2,936¥17,018

(3)
(¥15)

Total

¥20,838

(51)
(2)

(51)
(2)

(¥1,662)

836
(204)
(150)
3(3)
¥21,267

Millions of yen
Commonstock

Balance at March 31, 2003

¥2,990Additional
paid-in
capital¥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 income
Bonuses 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

Thousands of U.S. dollars
Commonstock

Balance at March 31, 2004

$26,924

Additional
paid-incapital$26,440

Retainedearnings$148,883

Treasurystock($110)

Unrealized holding losses on securities arising during the period
Foreign currency translation adjustments
Net income
Dividends declared
Bonuses paid to directors & corporate auditors
Equity in subsidiaries excluded in consolidation at beginning of year
Tresury stock
Balance at September 30, 2004

7,530
(1,838)(1,359)29$26,924$26,440$153,245(24)($134)Net gains and losses
not recognized in thestatements of operations

Total($14,492)$187,645

(457)
(16)

(457)
(16)

($14,965)

7,530(1,838)(1,359)29(24)$191,510

Consolidated Statements of Cash Flows (Unaudited)
TOMY COMPANY, LTD. AND SUBSIDIARIESFor the six months ended September 30, 2004 and 2003

Millions of yen

Cash Flows from Operating Activities:
Income 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
Others, net
Sub totalInterest and dividend received
Interest paid
Income tax paid
Net cash used in operating activities
Cash Flows from Investing Activities:
Purchase of property, plant and equipmentPurchase of marketable and investment securities
Proceeds from sales of marketable and investment securities
Others, net
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Proceeds from short-term borrowings, net
Repayment of long-term debt
Proceeds from long-term debt
Dividends paid
Others, 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 of consolidated subsidiaries
Cash and Cash Equivalents at End of Period

2004

2003

Thousands ofU.S. dollars

2004¥1,629761(20)
82(4,450)(2,239)
(687)
1,969
227
(2,728)
19
(125)
(407)
(3,241)¥3,466
1,087
(28)
158
(6,552)(2,320)
(398)
1,512
582
(2,493)
27
(160)
(442)
(3,068)$14,668
6,850
(177)
737
(40,072)(20,160)(6,189)17,727
2,052(24,564)
173(1,124)(3,667)(29,182)

(569)
(501)
505
(119)
(684)

(1,201)
(666)
3,437
3
1,573(5,122)(4,513)
4,545(1,066)(6,156)529(307)
7,000(204)
(27)
6,991
(31)
3,035
15,34971¥18,455

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

4,759(2,761)
63,035(1,833)(260)
62,940(275)
27,327138,219
639$166,185

Business Segment Information (Unaudited)
For the six months ended September 30, 2004 and 2003
The Group operates principally in the toy manufacturing and marketing business.

2004
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

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

Toy¥36,587
936,59634,269¥2,327¥36,320¥37,464
11
37,47533,157¥4,318¥37,246$329,462
82
329,544308,588$20,956$327,061

OthersMillions of yen
Total
Eliminations Consolidated¥1,264
1,290
2,554
2,274
¥280
¥4,642Others¥37,851
1,299
39,15036,543¥2,607¥40,962(1,299)(1,299)(542)(¥757)¥16,243¥37,851
37,851
36,001¥1,850¥57,205

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

Thousands of U.S. Dollars
OthersTotal
Eliminations Consolidated$11,383
11,61823,001
20,477$2,524$41,798$340,845
11,700352,545
329,065$23,480$368,859(11,700)(11,700)(4,879)($6,821)$146,272$340,845
340,845
324,186$16,659$515,131

Operations by Geographic Area (Unaudited)
For the six months ended September 30, 2004 and 2003
Sales and operating income are attributed to countries, based on location of business assets.

2004
Net Sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income (loss)
Total assets

Japan

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

Japan2004
Net Sales:
Sales to customers
Inter-segment sales
Total
Operating expenses
Operating income (loss)
Total assets

Japan¥29,736
1,326
31,062
27,660¥3,402¥31,668¥28,156
2,425
30,581
26,787¥3,794¥30,860$267,768
11,940279,708
249,083$30,625$285,166

Europe¥5,612
2
5,614
5,551
¥63
¥7,872Europe¥6,023
30
6,053
5,795
¥258
¥8,093

Europe$50,532
17
50,54949,987$562$70,888

North America

Millions of yen
Asia¥1,217
0
1,217
1,844
(¥627)¥1,736¥1,286
6,869
8,155
8,140
¥15
¥7,155Asia¥1,702
6,366
8,068
7,874
¥194
¥6,994

Millions of yen
Others¥2,861
12,8622,492¥370¥2,520Total¥37,851
8,197
46,04843,195¥2,853¥48,431

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

Thousands of U.S. Dollars
North America
Asia
Total
$10,960
0
10,96016,605($5,645)$15,629$11,585$61,860
73,44573,298$147$64,426$340,845
73,817
414,662
388,973$25,689$436,109

Eliminations

Consolidated(8,197)(8,197)(7,194)(¥1,003)¥8,774¥37,851
37,851
36,001¥1,850¥57,205

Eliminations

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

Eliminations

Consolidated(73,817)(73,817)(64,787)($9,030)$79,022$340,845
340,845
324,186$16,659$515,131

Overseas Sales and the Ratios (Unaudited)
For the six months ended September 30, 2004 and 2003
Overseas sales consist of export sales by TOMY COMPANY, LTD. and domestic subsidiaries and sales by consolidated foreign subsidiaries.
Millions of yen

Overseas sales
Consolidated sales
Overseas sales ratio2004
EuropeNorth America¥6,392¥1,611−−
16.9%
4.3%

Asia¥1,418−
3.7%

Total
¥9,421¥37,851
24.9%

Overseas sales
Consolidated sales
Overseas sales ratio

Thousands of U.S.Dollars
2004
EuropeNorth America
Asia$57,562$14,505$12,769
−
−
−
16.9%
4.3%
3.7%

Total
$84,836$340,845
24.9%

Europe¥6,367
−
16.4%

2003
Others¥4,693
−
12.1%

Total
¥11,060¥38,74228.5%

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 STATEMENTSThe 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, 2004, which was ￥111.05 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.