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.

Consolidated Financial Results
for the Six Months Ended August 31, 2021
<Under Japanese GAAP>
October 12, 2021
TOHO CO., LTD.
Tokyo Stock Exchange/Fukuoka Stock Exchange
9602
https://www.toho.co.jp/
Yoshishige Shimatani
President
Inquiries:
Harunori Kato
Senior Executive Officer in charge of Finance & Accounting, Corporate Management
Group
TEL:
+81-3-3591-1221
Scheduled date to file Quarterly Securities Report:
October 12, 2021
Scheduled date to commence dividend payments:
November 19, 2021
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:
None

Company name:
Listing:
Securities code:
URL:
Representative:(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended August 31, 2021 (from March 1, 2021 toAugust 31, 2021)(1) Consolidated operating results (cumulative)
Operating revenue
Six months ended
August 31, 2021
August 31, 2020
Comprehensive income

Millions of yen

Operating profit%

118,050
73,991

59.5(48.6)

Millions of yen

21,463
7,098

Profit attributable toowners of parent

Ordinary profit%

202.4(78.8)

Six months ended August 31, 2021
Six months ended August 31, 2020
Basic earnings per
share

Six months ended
August 31, 2021
August 31, 2020

(Percentages indicate year-on-year changes.)

Millions of yen

22,752
7,897

%

188.1
(77.2)¥13,514 million [766.1%]¥1,560 million [(92.0)%]

Diluted earnings per
share

Yen

Yen

85.17
21.30

–
–

(2) Consolidated financial position
Total assets
Millions of yen
As ofAugust 31, 2021
485,306
February 28, 2021
473,804
EquityAs of August 31, 2021
As of February 28, 2021

Millions of yen

Net assets
Millions of yen

393,433
389,011¥379,649 million¥375,820 million

Equity ratio
%

78.2
79.3

15,081
3,795

%

297.3
(83.4)

2. Cash dividends
Annual cash dividends per shareFirst quarter-end

Second quarter-end

Yen
Fiscal year ended
February 28, 2021
Fiscal year ending
February 28, 2022

Third quarter-end

Yen

-

17.50

-

17.50

Fiscal year-end

Yen

Fiscal year ending
February 28, 2022
(forecast)

Total

Yen

Yen

-

17.50

35.00

-

17.50

35.00

Note: Revisions to dividends forecasts most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending February 28, 2022 (from March 1, 2021
to February 28, 2022)(Percentages indicate year-on-year changes.)
Operating revenue
Millions ofyen

Fiscal year ending
February 28, 2022

226,000%

17.7

Operating profit
Millions ofyen

38,000

Basic
Profit attributable toearnings perowners of parent
share

Ordinary profit%

69.3

Note: Revisions to earnings forecasts most recently announced: Yes

Millions ofyen

40,000%65.3

Millions ofyen

26,000

%

77.0

Yen

146.83

* Notes(1) Changes in significant subsidiaries during the period: None
(2) Adoption of special accounting treatments for preparing quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2021

186,490,633 shares

As of February 28, 2021

186,490,633 sharesb. Number of treasury shares at the end of the period
As of August 31, 2021

10,192,650 shares

As of February 28, 2021

8,834,605 sharesc. Average number of shares during the period
Six months ended August 31, 2021

177,073,889 shares

Six months ended August 31, 2020

178,203,864 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters(Caution regarding forward-looking statements and others)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed reasonable by theCompany. Actual results may differ significantly from these forecasts due to various factors. Please referto “(3) Consolidated earnings forecasts and other forward-looking statements” in “1. Qualitative
Information” on page 4 of the attached materials for the suppositions that form the assumptions forearnings forecasts and cautions concerning the use thereof.
(Availability of supplementary material on financial results)
The supplementary document on quarterly earnings is disclosed on the same day as the quarterly financial
results, and it is made available on the Company’s website.

TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

Attached Material
1. Qualitative Information........................................................................................................................................................ 2(1) Details of operating results .............................................................................................................................................2(2) Details of financial position ............................................................................................................................................4(3) Consolidated earnings forecasts and other forward-looking statements .........................................................................5
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto...................................................................... 8(1) Quarterly consolidated balance sheet..............................................................................................................................8(2) Quarterly consolidated statement of income and consolidated statement of comprehensive income ...........................10(3) Quarterly consolidated statement of cash flows............................................................................................................12(4) Notes to quarterly consolidated financial statements ....................................................................................................13(Notes on going concern assumption)...........................................................................................................................13(Notes on significant changes in the amount of shareholders’ equity)..........................................................................13(Adoption of special accounting treatments for preparing quarterly consolidated financial statements) ......................13(Additional information)...............................................................................................................................................13(Segment information)..................................................................................................................................................14- 1 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

1.

Qualitative Information(1) Details of operating results
In the six months ended August 31, 2021, the outlook for the Japanese economy remained uncertain
because of the sudden spread of infection due to variants of the novel coronavirus disease (COVID19), such as the Delta variant, despite continuing signs of recovery amid the difficult economic
environment caused by the impact of COVID-19.
Under these conditions, the Group continued business after taking appropriate measures to prevent
infection. However, due to recurring declarations of states of emergency, the Group carried out
measures such as temporary closures/shortened operating hours at movie theaters, commercial
facilities, etc. due to requests for businesses to close temporarily from some local governments inTokyo, Osaka, etc.; restrictions on sales for admission; and the suspension of theatre performances aswell as the suspension of ticket sales for some performances. On the other hand, blockbuster releases
distributed by TOHO and works under the animation label “TOHO animation” contributed to financial
results. As a result, the Company recorded operating revenue of ¥118,050 million (up 59.5% year onyear), operating profit of ¥21,463 million (up 202.4% year on year), ordinary profit of ¥22,752 million(up 188.1% year on year), and profit attributable to owners of parent of ¥15,081 million (up 297.3%
year on year). Extraordinary losses were recorded as “Loss caused by temporary closures” forpersonnel expenses, rent expenses, depreciation, etc. during the temporary closures of theaters,commercial facilities, etc. and production expenses, etc. pertaining to suspended theatre performances.
Extraordinary income was recorded as “Subsidy income” for subsidies for employment adjustment
received due to special measures because of the impact of COVID-19, subsidies from the Japaneseand local governments, etc.
The operating results by segment are as follows.

Cinema businessIn the Production and Distribution business, “EVANGELION:3.0+1.0 THRICE UPON A TIME,”“Detective Conan: The Scarlet Bullet” and “Belle” were blockbusters for TOHO CO., LTD. out of thecollaborative productions and distributed works. “Monster Hunter” was collaboratively distributed by
TOHO CO., LTD. and Towa Pictures Co., Ltd., and “Fast & Furious 9” was distributed by Toho-Towa
Co., Ltd. As a result, operating revenue in the Production and Distribution business was ¥22,649
million (up 88.2% year on year) and operating profit was ¥5,433 million (up 85.1% year on year).
Combining the Production and Distribution department and the International business department of
TOHO CO., LTD., revenue was ¥26,862 million (up 97.5% year on year) before intracompany
transfers deduction (¥1,759 million, down 1.7% year on year). This consists of domestic distribution
revenue of ¥21,258 million (up 149.2% year on year), income from a film work that belongs to the
producer of ¥548 million (up 190.1% year on year), international sales income of ¥1,827 million (up94.6% year on year), TV program sales revenue of ¥500 million (down 33.8% year on year),videogram revenue of ¥288 million (down 69.6% year on year) and revenue from the Internet andother distribution of ¥2,438 million (up 9.1% year on year). Furthermore, revenue from the Planningand Production department was ¥508 million (down 36.4% year on year) before intracompany
transfers deduction (¥75 million, down 86.9% year on year).
In the Movie Theater Chain business, TOHO Cinemas Co., Ltd. saw a significant increase in revenue
due to the above distributed works being blockbusters in addition to theater closures, shortened
business hours, etc. not lasting as long compared with the same period of the previous fiscal year.
However, the situation continues to be difficult due to the release of works being postponed from late
April, closures and shortened business hours in Tokyo, Osaka, etc., and restrictions on sales foradmission. As a result, the number of movie theater customers in the six months ended August 31,
2021 increased by 113.2% year on year to 15,086,000. Operating revenue in the Movie Theater Chain
business was ¥28,902 million (up 135.6% year on year) and operating profit was ¥1,204 million(operating loss of ¥3,800 million in the same period of the previous fiscal year).

- 2 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

There were no theater changes in the six months ended August 31, 2021. The number of screens
managed by the corporate group is 702 throughout Japan (including 56 collaboratively managed
screens).
In the Production and Licensing business, sales of TOHO animation’s works performed favorably ineach business. In the Home Entertainment business, the TV animation “Umamusume: Pretty Derby
Season 2” saw favorable sales on Blu-ray and DVD, and the TV animation “JUJUTSU KAISEN” aswell as others were made available. Revenue in the Animation Production business increased as aresult of royalty from merchandising rights for the TV animation “JUJUTSU KAISEN,” “My Hero
Academia,” etc. in addition to royalty from various platform and revenue from the TV animation“Godzilla Singular Point.” In the Publishing and Merchandising business, sales of souvenir programs
and character goods grew for the movie “Detective Conan: The Scarlet Bullet,” TV animation“JUJUTSU KAISEN” and movie “My Hero Academia: World Heroes’ Mission.” TOHO Studios Co.,
Ltd. operated smoothly as a result of integrating the Production and Studio businesses. Although
TOHO EIZO BIJUTSU Co., Ltd. and Toho Butai Co., Ltd. saw some signs of recovery in relation tostage production and art production for movies, TV and commercials, etc. as well as production
services for display items in theme parks, the situation continued to be difficult. As a result, operating
revenue in the Production and Licensing business was ¥26,161 million (up 92.0% year on year) andoperating profit was ¥6,984 million (up 285.2% year on year).
In the Production and Licensing business department of TOHO CO., LTD., revenue was ¥25,780
million (up 120.9% year on year) before intracompany transfers deduction (¥4,490 million, up 145.1%
year on year). This consists of Home Entertainment business revenue of ¥8,627 million (up 65.5%
year on year), Publishing and Merchandising business revenue of ¥2,028 million (up 271.8% year onyear), Animation Production business revenue of ¥14,002 million (up 168.3% year on year), Liveaction Film Production business revenue of ¥573 million (down 6.3% year on year), Alternative
Content business revenue of ¥411 million (up 426.4% year on year) and other income of ¥137 million(up ¥137 million year on year).
As a result, in the overall Cinema business, operating revenue was ¥77,713 million (up 104.9% year
on year) and operating profit was ¥13,622 million (up ¥12,674 million year on year).

Theatrical businessIn the Theatrical business, the Company suspended performances and ticket sales and refunded tickets
due to the declaration of the states of emergency. However, performances were carried out inaccordance with requests from each local government. “Endless Shock -Eternal-,” “MOZART!,” “LesMisérables” and “Crest of the Royal Family” were performed at TOHO CO., LTD.’s Imperial Theatre.
“GHOST,” “You’re a Good Man, Charlie Brown,” “Chameleon’s Lip,” “Johnnys’ GINZA 2021
TOKYO EXPERIENCE,” “CLUB SEVEN ZERO III” “SHOW BOY,” etc., were performed at
Theatre Creation, and other external theatrical works took place throughout Japan. Revenue increased
significantly due to an increase in the number of performances year on year. At Toho Entertainment
Co., Ltd., there were suspensions, etc. of some stage and concert performances, but affiliated actors
worked favorably on commercial performances, etc. As a result, operating revenue in the Theatricalbusiness was ¥6,576 million (up 217.7% year on year) and operating profit was ¥1,147 million(operating loss of ¥1,146 million in the same period of the previous fiscal year).
In the Theatrical business department of TOHO CO., LTD., revenue was ¥5,655 million (up 325.5%
year on year) before intracompany transfers deduction (¥90 million, up 3.7% year on year). Thisconsists of production and exhibition revenue of ¥4,555 million (up 261.9% year on year), external
theatrical work revenue of ¥1,023 million (up ¥1,023 million year on year) and other income of ¥76
million (up 9.1% year on year).

Real Estate business
The Lease of Land and Buildings business continued to be in a difficult situation due to factors suchas changes in the office environment and the closure of commercial facilities. The vacancy rate of realestate for leasing held by the corporate group was 0.4%, but revenue decreased due to factors such as
temporary tenants changing out. Operating revenue in the Lease of Land and Buildings business was- 3 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

¥13,470 million (down 4.3% year on year) and operating profit was ¥5,884 million (down 9.2% year
on year).
With regard to unrealized gains on non-current assets of the corporate group, TOHO’s equity of thevaluation difference after considering the tax effect of recognizing the assessed value of non-current
assets in the property tax ledger on January 1, 2021 as market price is approximately ¥348,000 million.
(The disclosure of these unrealized gains is not based on the “Accounting Standard for Disclosuresabout Fair Value of Investment and Rental Property (ASBJ Statement No. 30) Etc.,” but continues tobe carried out voluntarily, separately from this standard from the perspective of enhancing information
disclosure.)
In the Land and Building Leasing department of TOHO CO., LTD., revenue was ¥14,354 million(down 3.4% year on year) before intracompany transfers deduction (¥397 million, down 3.0% year onyear).
In the Road business, amid strong public investment into areas such as infrastructure development due
to aging, Subaru Enterprise Co., Ltd. and its subsidiaries worked to increase new orders and expand
orders for existing projects through proactive sales activities by using design proposals, etc. However,the situation continued to be unpredictable due to rising labor costs and equipment prices. As a result,operating revenue in the Road business was ¥14,174 million (up 0.7% year on year) and operating
profit was ¥2,307 million (down 10.1% year on year). In the Building Maintenance business, TOHOBUILDING MANAGEMENT Co., Ltd. and Toho Facilities Co., Ltd. postponed projects received forcommercial facilities, such as hotels and theaters, but revenue increased as a result of working to
reduce expenses, etc. As a result, operating revenue was ¥4,836 million (up 2.5% year on year) andoperating profit was ¥475 million (up 79.6% year on year).
As a result of the above, operating revenue in the overall Real Estate business was ¥32,482 million(down 1.2% year on year) and operating profit was ¥8,667 million (down 7.0% year on year).

Other business
The Amusement business and the Restaurant and Sports Facilities business performed favorably due
to the increase of customers at Toho Kyoei Kigyo Co., Ltd.’s Toho Chofu Sports Park. TOHORETAIL CO., LTD.’s restaurants, theater concession stands, etc. closed temporarily and shops closed
due to the continuing difficult situation regarding demand for eating out. As a result, operating revenue
in the Other business was ¥1,277 million (up 13.9% year on year) and operating loss was ¥101 million(operating loss of ¥194 million in the same period of the previous fiscal year).

(2) Details of financial position
With regard to financial position as of the end of the second quarter ended August 31, 2021, total
assets increased by ¥11,501 million from the end of the previous fiscal year to ¥485,306 million. Thiswas mainly due to increases of ¥6,150 million in cash and deposits, ¥5,677 million in notes andaccounts receivable - trade, ¥4,999 million in short-term loans receivable with resale agreement and¥9,176 million in land despite decreases of ¥3,993 million in securities and ¥7,560 million in
investment securities.
Liabilities increased by ¥7,079 million from the end of the previous fiscal year to ¥91,872 million.
This was mainly due to an increase of ¥5,005 million in income taxes payable.
Net assets increased by ¥4,422 million from the end of the previous fiscal year to ¥393,433 million.
This was mainly due to the recording of ¥15,081 million in profit attributable to owners of parent andan increase of ¥11,966 million in retained earnings due to ¥3,114 million in dividends of surplus aswell as an increase of ¥5,726 million in treasury shares due to acquisition, etc. by tender offer fortreasury shares, and a decrease of ¥3,245 million in valuation difference on available-for-salesecurities.

- 4 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(3) Consolidated earnings forecasts and other forward-looking statements
The Company has revised the figures in the earnings forecasts for the fiscal year ending February 28,
2022, which were announced on July 13, 2021, as follows. There have been no material changes in
the assumptions regarding the impact of the spread of COVID-19 on consolidated earnings forecasts.
Revision of consolidated earnings forecasts for the fiscal year ending February 28, 2022 (from March 1,
2021 to February 28, 2022)

Operating revenue

Operating profit

Ordinary profit

Basic
Profit attributable toearnings perowners of parent
shareMillions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previously announced
forecasts (A)214,000

32,00033,50020,500115.39

Revised forecasts (B)226,000

38,00040,00026,000146.83

Change (B-A)

12,000

6,000

6,500

5,500

-

5.6

18.8

19.4

26.8

-

191,948

22,447

24,195

14,688

82.54

Change (%)(Reference) Previous
fiscal year results (fiscal
year ended February 28,
2021)

The future outlook by segment is as follows.

Cinema business
TOHO CO., LTD., Toho-Towa Co., Ltd., etc. will collaboratively produce and distribute the following
works, such as “Jujutsu Kaisen: Zero.” Because of this, the Company expects operating revenue of¥37,600 million (down 5.6% year on year) in the Production and Distribution business.
TOHO CO., LTD.’s collaborative productions/distributed works
Masquerade Night

Baragaki Unbroken Samurai

What Did You Eat Yesterday? Movie

The Mole Song -Undercover Agent Reiji- FINAL

Your Turn to Kill: The Movie

Jujutsu Kaisen: Zero

The Confidence Man JP -Episode of the HeroWorks contracted for distribution by Toho-Towa Co., Ltd., etc.
No Time to Die

Candyman

Snake Eyes (Towa Pictures Co., Ltd.)

Dear Evan Hansen

The Boss Baby: Family BusinessHouse of Gucci

Note: There is a possibility that changes, such as the postponement of releases, will occur for unreleased works. Pleaseconfirm the most recent information on the Company’s website.

In the Movie Theater Chain business, TOHO Cinemas Co., Ltd. and others are planning to release
popular works, primarily those listed above. The Company expects operating revenue of ¥63,600
million (up 37.5% year on year) in the Movie Theater Chain business.
Furthermore, with regard to changes planned at theaters from the third quarter onward, “TOHO
Cinemas Sevenpark Amami” (10 screens) is planned to open in Matsubara-shi, Osaka in November
2021, which will bring the Company to a 10 screen increase throughout Japan for a total of 712 screens(including 56 collaboratively managed screens) at the end of the fiscal year ending February 28, 2022.

- 5 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

In the Production and Licensing business, the Company will focus on securing and using content, suchas investing into the production of the animated theatrical feature film “Jujutsu Kaisen: Zero” as a
TOHO animation work. The Home Entertainment business of TOHO CO., LTD. will provide a lineup
featuring a large variety of works, such as TOHO animation’s works “Godzilla Singular Point” and“My Hero Academia,” the play “TOUKEN RANBU the Stage” and international movies such as“Godzilla vs. Kong,” and so on. The Publishing and Merchandising business plans to offer a wide
range of souvenir programs and character goods for works distributed by the Company, such as“Jujutsu Kaisen: Zero.” Furthermore, it will work to further increase royalty from merchandising rights,
etc. for the “TOHO Monster Series,” which includes “Godzilla.” The Alternative Content businesswill provide content from a wide range of genres, such as “LUPIN THE 3rd: The Castle of Cagliostro”
4K + 7.1ch (simultaneous release with “LUPIN THE 3rd: 50th Anniversary Special - Is Lupin Still
Burning?”) as the animation version of the 50th anniversary special of “LUPIN THE 3rd.” TOHOStudios Co., Ltd. will work to secure orders for movie, TV and commercial production, etc. byintegrating the Production and Studio businesses. TOHO EIZO BIJUTSU Co., Ltd. and Toho Butai
Co., Ltd. will work on construction management and cost management while working to obtain new
customers in order to secure art production works for movies and TV, event construction, etc., andactively carry out sales activities. Based on the above, the Company expects operating revenue of¥43,000 million (up 42.8% year on year) in the Production and Licensing business.
As a result, in the overall Cinema business, the Company expects operating revenue of ¥144,200
million (up 24.1% year on year).

Theatrical businessIn the Theatrical business, the Company is planning to carry out the following performances at TOHOCO., LTD.’s Imperial Theatre, Theatre Creation and others. Other than this, the Company will expand“Meoto-Manzai” and other performances as external theatrical works throughout Japan. Furthermore,
Toho Entertainment Co., Ltd. will proactively develop sales activities for affiliated actors’ activities
in commercials, TV, movie, etc. As a result, the Company expects operating revenue of ¥14,600
million (up 83.7% year on year) in the Theatrical business.
Imperial Theatre(September) DREAM BOYS

(October - November) Knights’ Tale

(November) My Fair Lady

(December) ABC Za Legend of Johnny’s 2021 at
Imperial Theatre(February) The Man Who Laughs(February - March) Spirited Away
Theatre Creation(August - September) Little Shop of Horrors(September - October) DOGFIGHT(October) VOICARION XIII - Her Majesty’s Room -(October - November) Home, I’m Darling(November - December) Grease(December) The Glass Menagerie(January) The Little Prince(February) SLAPSTICKS
Other theatres(September - November) Oliver! (TOKYU THEATRE
Orb)*(October) NEWSIES (Nissay Theatre)*(October) Mademoiselle Mozart (Brillia HALL)(February) Man of La Mancha (Nissay Theatre)

Note: Titles with an asterisk are collaboratively produced productions. There is a possibility that changes, such as the
postponement of releases, will occur. Please confirm the most recent information on the Company’s website.

Real Estate business
Under the difficult situation, which includes the decrease of office demand, in the Lease of Land andBuildings business, TOHO CO., LTD.’s Corporate Real Estate department will aim to effectively
utilize real estate held in Japan through corporate proposals for equipment repair and redevelopment- 6 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

from a long-term perspective while improving financial results by striving for comprehensive
responses for and mutual understanding with tenants. As a result, the Company expects operating
revenue of ¥27,000 million (down 3.3% year on year) in the Lease of Land and Buildings business.
In the Road business, Subaru Enterprise Co., Ltd. and its subsidiaries will work to expand orders bycarrying out proactive sales activities based on thorough cost management. The Company expects
operating revenue of ¥27,800 million (up 1.2% year on year) in the Road business.

In the Building Maintenance business, TOHO BUILDING MANAGEMENT Co., Ltd. and Toho
Facilities Co., Ltd. will work to reduce expenses and secure new orders under this difficult businessenvironment. As a result, the Company expects operating revenue of ¥9,700 million (down 0.5% year
on year) in the Building Maintenance business.
Due to the above, in the overall Real Estate business, the Company expects operating revenue of¥64,500 million (down 1.0% year on year).

Other business
The Amusement business and the Restaurant and Sports Facilities business will proactively develop
sales measures, etc. for Toho Kyoei Kigyo Co., Ltd.’s Toho Chofu Sports Park. Furthermore, theRetailing and Retail Services business for TOHO RETAIL CO., LTD.’s restaurants, theater concession
stands, etc. will carry out sales activities taking into consideration demand, profitability, etc. based on
the difficult business environment.
As a result, the Company expects operating revenue of ¥2,700 million (up 0.8% year on year) in the
Other business.

The Company expects an initial budget of ¥13,900 million for capital expenditures for the full year,
which includes ordinary repair work (repair work within the scope of depreciation (¥8,800 million
budget)), new construction for “TOHO Cinemas Sevenpark Amami,” which is planned to open in
November 2021, and other work. However, the Company will flexibly carry out additional investments
for the purchase of new properties and acquisition of equipment.

As a result, the Company is expected to record operating revenue of ¥226,000 million (up 17.7% year
on year) in the fiscal year ending February 28, 2022, operating profit of ¥38,000 million (up 69.3%
year on year), ordinary profit of ¥40,000 million (up 65.3% year on year), and profit attributable toowners of parent of ¥26,000 million (up 77.0% year on year).

- 7 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

2.

Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly consolidated balance sheet(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Inventories
Short-term loans receivable with resale agreement
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

As of February 28, 2021

As of August 31, 2021

37,53020,34539,094
8,906
47,99930,192(42)

43,68026,02335,101
8,422
52,99925,962(44)

184,028

192,146

79,482
61,6202,106
8,417

82,02070,7962,324
8,129

151,626

163,271

3,458
2,608

3,101
2,594

6,066

5,695

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

113,400
18,989(306)

105,840
18,441(89)

Total investments and other assets

132,083

124,192

289,776

293,160

473,804

485,306

Total non-current assets
Total assets- 8 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(Millions of yen)
As of February 28, 2021

As of August 31, 2021

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other provisions
Asset retirement obligations
Other

18,397
116
2,258
907
204
68
17,51921,030
61
7,263
975
181
44
18,114

Total current liabilities

39,47347,672

3,489
155

3,564
134

236
6,858
34,580236
6,948
33,316

Non-current liabilities
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other provisions
Asset retirement obligations
Other

45,31944,199Total liabilities

Total non-current liabilities

84,792

91,872

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

10,355
14,087357,068(23,771)

10,355
14,096
369,034(29,498)357,740

363,989

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders’ equity

19,290800(952)(1,059)16,044800(183)(1,002)

Total accumulated other comprehensive income

18,07915,660Non-controlling interests

13,191

13,784

Total net assets

389,011

393,433

473,804

485,306

Total liabilities and net assets- 9 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Six months ended August 31, 2021
(Millions of yen)Six months ended
August 31, 2020
Operating revenue
Operating costs
Gross profit
Selling, general and administrative expenses
Personnel expenses
Advertising expenses
Provision for bonuses
Retirement benefit expenses
Provision for retirement benefits for directors (and otherofficers)
Rent expenses on land and buildings
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury shares
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Received settlement fee
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Impairment loss
Loss caused by temporary closures
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 10 -

Six months ended
August 31, 2021

73,99145,83428,156

118,050
70,60347,446

8,259
1,177
648
495

9,210
2,501
700
490

7

14

2,669
7,801
21,058
7,098

3,695
9,370
25,983
21,463

58
875

35
811

15

44

110
1,060

179
263
1,333

16
201
43
261
7,897

16
22
4
44
22,752

684
180
500
1,364

5
794
799

76
52
2,211
2,340
6,921
3,213
(939)
2,273
4,648
852
3,795

23
548
572
22,980
7,291
(245)
7,045
15,934853
15,081TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

Quarterly consolidated statement of comprehensive income
Six months ended August 31, 2021
(Millions of yen)Six months ended
August 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 11 -

Six months ended
August 31, 2021

4,648

15,934(2,948)(186)
69(3,246)
769
57

(22)

(0)

(3,087)(2,420)1,560

13,514704

12,661

856

852

TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
August 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Loan advances
Collection of loans receivable
Proceeds from cancellation of money held in trust
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Repayments of lease obligations
Cash flows provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

Six months ended
August 31, 2021

6,921
4,094
356
(106)
(933)
16

22,980
4,283
356
(215)
(846)
16

(15)

(44)

76
5,085
1,244
(7,233)(3,116)(4,592)
1,799
1,170
(31)
(11,159)
25(8,196)23(5,669)
538
2,632
1,768
2,703
28,527937(33)(2,548)2,353
29,236(10,199)
43,500(5,012)779(2,005)
(3)
60
(127)
26,991(22,399)
30,900(16,417)174(2,004)
(41)
4
2,600
67
(7,115)7
15(15)(6,863)(6,745)(346)(55)(5,779)(3,116)
(288)

(2)

(2)

(6)
(13,956)(8)(9,250)

(250)

873

4,587
118,445
123,033

13,74485,827
99,571TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(4) Notes to quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
The Company purchased 1,366,503 treasury shares through tender offer based on a resolution at theBoard of Directors meeting held on April 13, 2021. Due to this purchase, treasury shares increased by¥5,726 million in the six months ended August 31, 2021, bringing the amount of treasury shares to¥29,498 million as of the end of the second quarter ended August 31, 2021.
(Adoption of special accounting treatments for preparing quarterly consolidated financial
statements)
None(Additional information)
Amid repeated declarations of states of emergency, the Group suspended operations and shortened
business hours at movie theaters in applicable areas, cancelled, refunded, etc. theatre performancesand suspended operations of commercial facilities based on policies, requests, etc. from each local
government, and changed release schedules for film distribution in light of the status of COVID-19.
There has been no material change from the assumptions regarding the impact of COVID-19 presented
in the additional information in the annual securities report for the previous fiscal year.
There is a considerable amount of uncertainty regarding the spread of infection going forward andwhen COVID-19 will come under control as well as the market after COVID-19 comes under control
and consumer trends. In the event that the status of COVID-19 or the impact on the economic
environment deviates from these assumptions, it could have an impact on the Group’s financial
position, operating results, and cash flow.

- 13 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2021

(Segment information)[Segment information]I.

Six months ended August 31, 2020
Disclosure of net sales and profit (loss) by reportable segment
Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales
or transfers
Total
Segment profit(loss)

Other(Note 1)

Total

(Millions of yen)Amounts inthe quarterly
Adjustments consolidated
statement of(Note 2)income(Note 3)Cinemabusiness

Theatricalbusiness

Real Estatebusiness

37,9242,069

32,874

72,8691,121

73,991-73,991

639

6

2,128

2,774

21

2,795

(2,795)-38,5642,076

35,00375,644

1,142

76,786(2,795)73,991947(1,146)

9,315

9,117

(194)

8,922

(1,824)

7,098

Total

(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments and includes businesses
that operate restaurants and sports facilities.
2. The ¥1,824 million deducted from segment profit (loss) as adjustment consists of an addition of ¥1 million inintersegment transaction elimination, and a deduction of ¥1,826 million in corporate expenses that cannot beallocated to any reportable segment. Corporate expenses mainly consist of general and administrative expenses thatare not attributable to reportable segments.
3. Segment profit (loss) is adjusted with operating profit stated in the quarterly consolidated statement of income.

II. Six months ended August 31, 2021
Disclosure of net sales and profit (loss) by reportable segment
Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales
or transfers
Total
Segment profit(loss)

Other(Note 1)

Total

(Millions of yen)Amounts inthe quarterly
Adjustments consolidated(Note 2)statement ofincome(Note 3)Cinemabusiness

Theatricalbusiness

Real Estatebusiness

77,713

6,576

32,482

116,772

1,277

118,050-

118,050

1,091

10

2,526

3,628

21

3,649

(3,649)-78,804

6,587

35,008120,401

1,298

121,700(3,649)118,050

13,622

1,147

8,667

23,437(101)

23,335(1,872)

21,463

Total(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments and includes businesses
that operate restaurants and sports facilities.
2. The ¥1,872 million deducted from segment profit (loss) as adjustment consists of an addition of ¥2 million inintersegment transaction elimination, and a deduction of ¥1,875 million in corporate expenses that cannot beallocated to any reportable segment. Corporate expenses mainly consist of general and administrative expenses thatare not attributable to reportable segments.
3. Segment profit (loss) is adjusted with operating profit stated in the quarterly consolidated statement of income.

- 14 -