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, 2022
<Under Japanese GAAP>
October 12, 2022
TOHO CO., LTD.
Tokyo Stock Exchange/Fukuoka Stock Exchange
9602
https://www.toho.co.jp/
Hiro Matsuoka
Representative Director and President
Inquiries:
Harunori Kato
Senior Executive Officer in charge of Finance & Accounting, Corporate Management
Group
TEL:
+81-3-3591-1218
Scheduled date to file Quarterly Securities Report:
October 12, 2022
Scheduled date to commence dividend payments:
November 21, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:Yes (for institutional investors andanalysts)
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, 2022 (from March 1, 2022 toAugust 31, 2022)(1) Consolidated operating results (cumulative)
Operating revenue
Six months ended
August 31, 2022
August 31, 2021

Millions of yen

Note: Comprehensive income

Operating profit
%

–
59.5

120,353
118,050

Millions of yen

25,984
21,463

Profit attributable toowners of parent

Ordinary profit
%

–
202.4

Six months ended August 31, 2022
Six months ended August 31, 2021

Basic earnings per
share
Six months ended
August 31, 2022
August 31, 2021

(Percentages indicate year-on-year changes.)

Millions of yen

30,21322,752%Millions of yen

–
188.1

21,55815,081%–297.3¥22,992 million [–%]
¥13,514 million [766.1%]

Diluted earnings per
share

Yen

Yen

–

122.2485.17–

Note: Please note that the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
was adopted from the beginning of the fiscal year ending February 28, 2023, and each figure for the first six monthsof the fiscal year ending February 28, 2023 reflects the adoption of the accounting standard. As such, year-on-year
percentage changes are not provided.

(2) Consolidated financial position
Total assets
As ofAugust 31, 2022
February 28, 2022
Reference: Equity

Millions of yen

526,911502,532
As of August 31, 2022
As of February 28, 2022

Net assets
Millions of yen

421,589
409,181¥407,405 million¥395,722 million

Equity ratio
%

77.3
78.7

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

Second quarter-end

Yen
Fiscal year ended
February 28, 2022
Fiscal year ending
February 28, 2023

Third quarter-end

Yen

−

17.50

−

20.00

Fiscal year-end

Yen

Fiscal year ending
February 28, 2023
(forecast)

Total

Yen

Yen

−

27.50

45.00

–

20.00

40.00

Note: Revisions to dividends forecasts most recently announced: None
Breakdown of year-end dividends
Fiscal year ended February 28,

2022Special dividend – ¥10.00

3. Consolidated earnings forecasts for the fiscal year ending February 28, 2023 (from March 1, 2022
to February 28, 2023)(Percentages indicate year-on-year changes.)
Operating revenue
Millions ofyen

Fiscal year ending
February 28, 2023

240,000%–

Operating profit
Millions ofyen

42,000%–

Basic
Profit attributable toearnings perowners of parent
share

Ordinary profit
Millions ofyen

45,000%–Millions ofyen

32,000%–Yen

181.45

Note: Revisions to earnings forecasts most recently announced: Yes
Please note that the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
was adopted from the beginning of the fiscal year ending February 28, 2023, and the above consolidated earnings
forecasts reflect the adoption of the accounting standard. As such, year-on-year percentage changes are not provided.

* 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: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
Note:

For details, please see “Changes in accounting policies” on page 13.

(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, 2022

186,490,633 shares

As of February 28, 2022

186,490,633 sharesb. Number of treasury shares at the end of the period
As of August 31, 2022

10,750,331 shares

As of February 28, 2022

9,925,592 sharesc. Average number of shares during the period
Six months ended August 31, 2022

176,359,733 shares

Six months ended August 31, 2021

177,073,889 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 5 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, 2022

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
Quarterly consolidated statement of income .................................................................................................................10
Quarterly consolidated statement of comprehensive income ........................................................................................11(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(Changes in accounting policies) ..................................................................................................................................13(Segment information, etc.) ..........................................................................................................................................15(Significant subsequent events) ....................................................................................................................................17- 1 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

1.

Qualitative Information(1) Details of operating results
In the six months ended August 31, 2022, the outlook for the Japanese economy remained uncertain
due to the rise in raw material prices, etc. amid concerns that the novel coronavirus disease (COVID19) and circumstances in Ukraine will be protracted, despite signs of a recovery.
Under these conditions, the Group carried out flexible sales activities in each business while working
to prevent the spread of COVID-19. Hit works such as “Detective Conan: The Bride of Halloween,”“KINGDOM2: Far and Away” and “SHIN ULTRAMAN,” which are distributed by TOHO CO., LTD.,
contributed to the financial results. As a result, operating revenue was ¥120,353 million (¥118,050
million in the same period of the previous fiscal year), operating profit was ¥25,984 million (¥21,463
million in the same period of the previous fiscal year), ordinary profit was ¥30,213 million (¥22,752
million in the same period of the previous fiscal year) and profit attributable to owners of parent was¥21,558 million (¥15,081 million in the same period of the previous fiscal year). In addition,
cooperative grants for large-scale facilities, etc. associated with the impact of COVID-19 have beenrecorded under extraordinary income as “subsidy income.”
In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the firstquarter of the current fiscal year. Consequently, since the figures for the first six months of the current
fiscal year are the amounts following the application of such accounting standards, we have notpresented changes as compared to corresponding period of the previous fiscal year.
In addition, in April this year, we launched the “TOHO VISION 2032 TOHO Group Management
Corporate Strategy” comprised of the “Long-term Vision 2032,” which is targeting the 100th
anniversary, and the “Medium-term Management Plan 2025,” which outlines specific measures forthe next 3 years and we are engaged in initiatives for sustained growth and to increased medium- tolong-term corporate value.
The operating results by segment are as follows.

Cinema businessIn the Production and Distribution business, TOHO CO., LTD. had hits with collaboratively produced
and distributed works “Detective Conan: The Bride of Halloween,” “KINGDOM2: Far and Away,”“SHIN ULTRAMAN” and “Doraemon the movie: Nobita’s Little Star Wars 2021.” As for works
distributed by Toho-Towa Co., Ltd. and others, “Top Gun: Maverick” has been a long-running
blockbuster, while “Jurassic World: Dominion,” “Minions: The Rise of Gru” and “Sing 2” had highlevels of operation. In addition, we did not recognize the total amount of revenue for some international
movie distribution transactions within film distribution where the Group’s role is categorized as anagency under the application of Accounting Standard for Revenue Recognition, etc., and changed torecognizing revenue on a net basis after deducting related expenses. As a result, operating revenue in
the Production and Distribution business was ¥19,968 million (¥22,649 million in the same period of
the previous fiscal year) and operating profit was ¥7,758 million (¥5,433 million in the same periodof the previous fiscal year). The above operating revenue mainly consists of ¥14,222 million from
distribution to movie theaters (*1) and ¥1,241 million from the domestic streaming of theatrical films(*2).
In the Movie Theater Chain business, TOHO Cinemas Ltd. and others benefited from the above
distributed works being blockbusters, release of popular works such as “ONE PIECE FILM RED,”and theater closures, etc. not lasting as long compared with the same period of the previous fiscal year.
As a result, the number of movie theater customers in the six months ended August 31, 2022 increasedby 43.4% year on year to 21,635,000. In addition, we did not recognize the total amount of revenue
for sales of some souvenir programs and merchandise at the retail shops in theaters where the Group’s
role is categorized as an agency under the application of Accounting Standard for Revenue
Recognition, etc., and changed to recognizing revenue on a net basis after deducting related expenses.
As a result, operating revenue in the Movie Theater Chain business was ¥38,378 million (¥28,902
million in the same period of the previous fiscal year) and operating profit was ¥5,331 million (¥1,204- 2 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

million in the same period of the previous fiscal year). With regard to theater changes in the six months
ended August 31, 2022, TOHO Cinemas Ltd. opened “TOHO Cinemas LaLaport Fukuoka” (9screens) in Hakata-ku, Fukuoka City on April 25. As a result, the number of screens managed by the
corporate group increased by 9 to 721 throughout Japan (including 56 collaboratively managed
screens).
In the Production and Licensing business, the Company commenced TOHO animation’s 10th
anniversary project and rolled out various initiatives, including TV animation as well as the
Merchandising business with a wide lineup such as “JUJUTSU KAISEN,” “My Hero Academia,”“SPY x FAMILY” and “Teasing Master Takagi-san.” There was revenue in the Animation Production
business as a result of royalty from various platforms and through investing into the production of theabove works, etc. In addition, the Home Entertainment business of TOHO CO., LTD. provided works
such as the movies “Masquerade Night” and “What Did You Eat Yesterday? Movie.” In the Publishingand Merchandising business, sales grew for souvenir programs and character goods for works
distributed by the Company such as the movies “SHIN ULTRAMAN” and “Detective Conan: The
Bride of Halloween,” and for the international movie “Top Gun: Maverick.” The Alternative Content
business provided works such as the movie “Teasing Master Takagi-san.” TOHO Studios Co., Ltd.
operated smoothly as a result of integrating the Production and Studio businesses. At TOHO EIZO
BIJUTSU Co., Ltd. and Toho Butai Co., Ltd., the situation continued to be difficult in relation to stage
production and art production for movies, TV and commercials, etc. as well as production services fordisplay items in theme parks. As a result, operating revenue in the Production and Licensing businesswas ¥19,853 million (¥26,161 million in the same period of the previous fiscal year) and operating
profit was ¥4,155 million (¥6,984 million in the same period of the previous fiscal year). The above
operating revenue mainly consists of ¥6,711 million for the use of animation contents (*3), ¥1,834
million for sale of home entertainment and ¥3,903 million for art production related to production andlicensing works, etc. (*4).
As a result, in the overall Cinema business, operating revenue was ¥78,199 million (¥77,713 million
in the same period of the previous fiscal year) and operating profit was ¥17,245 million (¥13,622
million in the same period of the previous fiscal year).

Theatrical businessIn the Theatrical business, the first stage performance of “Spirited Away,” as a work commemorating
the 90th anniversary of TOHO’s founding, was staged at the Imperial Theatre and was completely
sold out. Subsequently, the Company rolled out various initiatives including performance and live
streaming at regions throughout Japan. “Endless SHOCK -Eternal-,” “Guys and Dolls” and “Miss
Saigon” were performed and achieved success at the Imperial Theatre. “Piaf,” “Next to Normal,”“VOICARION XIV ～The Spoon～,” “CROSS ROAD,” “Only 1, NOT No.1,” “Q & A,” “Daddy
Long Legs” and others were performed at Theatre Creation. “Your Lie in April” was performed to afull house at Nissay Theatre. However, as was the case last year, performances of some works werecancelled. At Toho Entertainment Co., Ltd., affiliated actors worked favorably on commercial
performances, etc.
As a result of the above, operating revenue in the Theatrical business was ¥8,348 million (¥6,576
million in the same period of the previous fiscal year) and operating profit was ¥1,101 million (¥1,147
million in the same period of the previous fiscal 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 market, but due to efforts to effectively use owned properties andcomprehensively respond to tenants, the vacancy rate of real estate for leasing was 1.1% as of the endof the second quarter of the current fiscal year. As a result, operating revenue in the Lease of Land andBuildings business was ¥13,899 million (¥13,470 million in the same period of the previous fiscal
year) and operating profit was ¥6,072 million (¥5,884 million in the same period of the previous fiscal
year).

- 3 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

In the Road business, there was strong public investment, but the situation continued to be
unpredictable due to a chronic labor shortage and rising labor costs and equipment prices. Subaru
Enterprise Co., Ltd. and its subsidiaries worked to increase new orders and expand orders for existing
projects through proactive sales activities by making technical proposals, etc., aiming for thoroughsafety management. As a result, operating revenue in the Road business was ¥14,606 million (¥14,174
million in the same period of the previous fiscal year) and operating profit was ¥3,025 million (¥2,307
million in the same period of the previous fiscal year). Operating revenue mainly consists of ¥13,367
million from road maintenance, repair and cleaning services and also includes ¥406 million of otherrevenue.
In the Building Maintenance business, TOHO BUILDING MANAGEMENT Co., Ltd. and Toho
Facilities Co., Ltd. worked to secure new orders and reduce expenses. As a result, operating revenue
was ¥4,729 million (¥4,836 million in the same period of the previous fiscal year) and operating profit
was ¥424 million (¥475 million in the same period of the previous fiscal year).
As a result of the above, operating revenue in the overall Real Estate business was ¥33,234 million(¥32,482 million in the same period of the previous fiscal year) and operating profit was ¥9,521 million(¥8,667 million in the same period of the previous fiscal year).

Other businessToho Kyoei Kigyo Co., Ltd.’s Toho Chofu Sports Park and TOHO RETAIL CO., LTD.’s theater
concession stands, etc. developed various sales measures and carried out sales activities taking
profitability into consideration. TOHO RETAIL CO., LTD. withdrew from the Directly Managed
Restaurant business in August 2021. As a result, operating revenue in the Other business was ¥570
million (¥1,277 million in the same period of the previous fiscal year) and operating profit was ¥102
million (operating loss of ¥101 million in the same period of the previous fiscal year).

* Additional information(*1)

Distribution to movie theaters: Revenue recognized on a net basis with respect to someinternational movie distribution transactions within film distribution to box-officecompanies(*2)

Domestic streaming of theatrical films: Domestic streaming of theatrical films excluding
income from streaming TV animation(*3)

Use of animation contents: sales of programs mainly centered on streaming, royalty frommerchandising rights, etc.

(*4)

Art production related to production and licensing works, etc.: Art production works formovies and TV, event construction, and production services for display items, etc.

(2) Details of financial position
With regard to the financial position as of the end of the second quarter of the current fiscal year, total
assets increased by ¥24,379 million from the end of the previous fiscal year to ¥526,911 million. Thiswas mainly due to increases of ¥7,195 million in cash and deposits, ¥7,826 million in notes andaccounts receivable - trade, and contract assets compared to the notes and accounts receivable - tradeat the end of the previous fiscal year, and ¥7,999 million in short-term loans receivable with resaleagreement, despite a decrease of ¥5,653 million in investment securities.
Liabilities increased by ¥11,971 million from the end of the previous fiscal year to ¥105,322 million.
This was mainly due to an increase of ¥7,209 million in accounts payable - trade.
Net assets increased by ¥12,408 million from the end of the previous fiscal year to ¥421,589 million.
This was mainly due to an increase of ¥15,442 million in retained earnings and an increase of ¥4,205
million in treasury shares.

- 4 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(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,
2023, which were announced on July 12, 2022, as follows. Please note that the “Accounting Standard
for Revenue Recognition,” etc. was adopted from the beginning of the fiscal year ending February 28,
2023, and each figure for the consolidated earnings forecasts accordingly reflects the adoption of theaccounting standard. As such, year-on-year amount and percentage changes are not provided.

Revision of consolidated earnings forecasts for the fiscal year ending February 28, 2023 (from March 1, 2022
to February 28, 2023)
Ordinary profit

Profit attributableto owners ofparentBasic earnings
per share

Millions of yen

Millions of yen

Millions of yen

Yen

232,000

38,00041,00028,500161.41240,000

42,00045,00032,000181.45

Change (B-A)

8,000

4,000

4,000

3,500

−

Change (%)

3.4

10.5

9.8

12.3

−

228,367

39,94842,79029,568167.24

Operatingrevenue

OperatingprofitMillions of yen

Previously announced
forecasts (A)Revised forecasts (B)(Reference) Previous
fiscal year results(fiscal year ended
February 28, 2022)

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
popular works. Because of this, the Company expects operating revenue of ¥41,000 million (¥40,439
million in the previous fiscal year) in the Production and Distribution business.
TOHO CO., LTD.’s collaborative productions/distributed works
A HUNDRED FLOWERS

Silent Parade

7 Secretaries The Movie

The Lines that Define Me

SuzumeFragments of The Last Will

Dr. Coto’s Clinic 2022 (Tentative Title)

Black Night Parade (Tentative Title)

Ichikei’s Crow? The Criminal Court Judges The Movie
Yudo (Tentative Title)(Tentative Title)
Works contracted for distribution by Toho-Towa Co., Ltd., etc.
Downton Abbey: A New Era

The Bad Guys

Ticket to Paradise

She Said

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

- 5 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

In the Movie Theater Chain business, TOHO Cinemas Ltd. and others are planning to release “Suzume”
and other popular works, primarily consisting of those listed above. The Company expects operating
revenue of ¥75,300 million (¥57,673 million in the previous fiscal year) in the Movie Theater Chain
business.
In the Production and Licensing business, the Company commenced TOHO animation’s 10th
anniversary project and will roll out various initiatives, including TV animation as well as the
Merchandising business and the Home Entertainment business, with a wide lineup such as “My Hero
Academia,” “SPY x FAMILY” and “Yowamushi Pedal Limit Break.” The Publishing andMerchandising business plans to offer a wide range of souvenir programs and character goods forworks distributed by the Company, such as “Suzume.” Furthermore, it will work to further increase
royalty from merchandising rights, etc. for the “TOHO Monster Series,” which includes “Godzilla.”
TOHO Studios 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¥38,600 million (¥46,667 million in the previous fiscal year) in the Production and Licensing business.
As a result, in the overall Cinema business, the Company expects operating revenue of ¥154,900
million (¥144,781 million in the previous fiscal year).
TOHO CO., LTD. made TIA Inc. a subsidiary upon having purchased additional TIA Inc. shares on
September 16, 2022, and has accordingly changed its name to TOHO animation STUDIO Inc. In
addition, the Company purchased all shares of AID-DCC Inc., upon having concluded a share purchaseagreement on September 27, 2022.

Theatrical businessIn the Theatrical business, the Company plans to carry out the following performances at TOHO CO.,LTD.’s Imperial Theatre, Theatre Creation and others, and will also expand “Miss Saigon” and otherperformances 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 ¥18,000 million (¥15,157 million in theprevious fiscal year) in the Theatrical business.
Imperial Theatre(September) DREAM BOYS

(October - November) Elisabeth(December) ABC Za 10th Anniversary Legend ofJohnny’s 2022 at Imperial Theatre(February) Kingdom

Theatre Creation(September) Thoroughly Modern Millie(October) The Great War of Archimedes(November - December) SHOW-ism XI BERBERRENDEZVOUS(January) NAOTO KAIHO CONCERT ATTENTION
PLEASE!

(October - November) The Fantasticks(December) 4000 Miles(January) First Date

(February) CLUB SEVEN 20th Anniversary
Other theatres(September - October) Hairspray (Brillia HALL)(October) Jersey Boys (Nissay Theatre)*(November - December) Sister Act (TOKYU
THEATRE Orb)

(January) The Beautiful Game (Nissay Theatre)*(February) Ichimura-za (Nissay Theatre)*
Note: Titles with an asterisk are collaboratively produced productions. There is a possibility that changes, such as the- 6 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

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 redevelopmentfrom 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 ¥28,000 million (¥27,155 million in the previous fiscal year) in the Lease of Land andBuildings 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 ¥27,700 million (¥28,977 million in the previous fiscal 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 with ongoing price competition. As a result, the Company expects operating revenue of¥10,300 million (¥9,699 million in the previous fiscal year) in the Building Maintenance business.
Due to the above, in the overall Real Estate business, the Company expects operating revenue of¥66,000 million (¥65,832 million in the previous fiscal year).
Other business
The Amusement business and the Merchandise Sales business will proactively develop sales measures,etc. for Toho Kyoei Kigyo Co., Ltd.’s Toho Chofu Sports Park. Furthermore, the businesses will
engage in initiatives that include developing various products for the theater concession stands, etc. of
TOHO RETAIL CO., LTD.
As a result, the Company expects operating revenue of ¥1,100 million (¥2,596 million in the previous
fiscal year) in the Other business.
Planned capital expenditures for the full fiscal year include ordinary repair work (repair work within
the scope of depreciation (¥9,000 million budget)), completion, etc. of “TOHO Cinemas LaLaport
Fukuoka,” which opened in April 2022, and “Toho Hibiya Promenade Building.” These capital
expenditures are expected to be made within the budget of ¥20,500 million. However, the Company
will flexibly carry out additional investments for the purchase of new properties and acquisition ofequipment.
As a result, the Company is expected to record operating revenue of ¥240,000 million (¥228,367
million in the previous fiscal year) in the fiscal year ending February 28, 2023, operating profit of¥42,000 million (¥39,948 million in the previous fiscal year), ordinary profit of ¥45,000 million(¥42,790 million in the previous fiscal year), and profit attributable to owners of parent of ¥32,000
million (¥29,568 million in the previous fiscal year).

- 7 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

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
Notes and accounts receivable - trade, and contract
assetsSecurities
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, 2022

As of August 31, 2022

37,75022,852

44,946––30,67840,607
8,417
53,99924,313(74)

40,4099,998
61,99925,867(49)

187,866

213,850

80,05075,4385,453
8,922

80,586
77,1907,396
8,800

169,865

173,973

2,745
2,641

2,388
2,516

5,386

4,904

Investments and other assets
Investment securities
Other
Allowance for doubtful accounts

121,891
17,601(78)

116,237
18,032(87)

Total investments and other assets

139,413134,182

314,665

313,061

502,532

526,911

Total non-current assets
Total assets- 8 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(Millions of yen)
As of February 28, 2022

As of August 31, 2022

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

19,305
60
9,751
972
170
–
17,26926,514
53
9,725
994
129
13
22,332

Total current liabilities

47,531

59,762

3,636

3,651

140

137

236
6,994
34,812

236
7,101
34,431

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

45,81945,559Total liabilities

Total non-current liabilities

93,351

105,322

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

10,355
14,122
380,430(28,712)

10,355
14,153395,873(32,917)

Total shareholders’ equity

376,197

387,465

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

19,854800(121)(1,008)19,758
800
331
(950)

Total accumulated other comprehensive income

19,525

19,939Non-controlling interests

13,45814,183

Total net assets

409,181421,589

502,532

526,911

Total liabilities and net assets- 9 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(2) Quarterly consolidated statement of income and consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
Six months ended August 31, 2022
(Millions of yen)Six months ended
August 31, 2021
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
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
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, 2022

118,050
70,60347,446

120,353
64,14456,208

9,210
2,501
700
490

9,593
3,301
708
512

14

13

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

4,520
11,57330,22425,984

35
811

36
964

44

315

179
263
1,333

2,745
174
4,235

16
22
4
44
22,75230
2
530,213

5
794
799

75
2,353
2,429

23
548
572
22,980
7,291
(245)
7,045
15,934853
15,08128–
28
32,615
9,901
136
10,037
22,577
1,019
21,558TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

Quarterly consolidated statement of comprehensive income
Six months ended August 31, 2022
(Millions of yen)Six months ended
August 31, 2021
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
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, 2022

15,934

22,577(3,246)
769
57

(94)
452
58

(0)

(1)

(2,420)414

13,51422,992

12,661

21,972852

1,019

TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(3) Quarterly consolidated statement of cash flows(Millions of yen)Six months ended
August 31, 2021
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
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Loan advances
Proceeds from collection of loans receivable
Investments in money held in trust
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
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Repayments of lease obligations
Net cash 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, 2022

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

32,615
4,540
356
(16)
(1,000)
3

(44)

(315)

23
(5,669)
538
2,632
1,768
2,703
28,527
937
(33)
(194)
29,23628(7,784)(1,457)
7,191
320
(148)
34,3331,089(6)(9,952)
25,462(22,399)
30,900(16,417)174(2,004)
(41)
4
–
2,600
67
(7,115)(20,399)
28,300(9,888)363(2,004)
(22)
56
(300)
2,600
(340)
(1,635)(55)(5,779)(3,116)(288)(7)(4,240)(4,863)
(305)

(2)

(3)

(8)
(9,250)(7)(9,427)

873

3,104

13,74485,827
99,571

17,50392,341
109,844TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(4) Notes to quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Adoption of special accounting treatments for preparing quarterly consolidated financial
statements)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, Etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has recognized revenue at the time the control of promised goods or services
is transferred to the customer at the amount expected to be received upon exchange of said goods orservices. The main changes due to this are as follows.
We do not recognize the total amount of revenue such as for some international movie distribution
transactions with distribution to movie theaters and for sales of some souvenir programs andmerchandise at the retail shops in theaters where the Group’s role is categorized transactions as anagency and recognize revenue on a net basis after deducting related expenses.
With regard to point systems operated by the management of movie theaters, we do not recognize thepoints that are granted as revenue when the movie is viewed but recognize them as a performanceobligation. We allocate the transaction price based on an independently calculated sales price thatconsiders factors including the forecast future expiration.
We do not recognize revenue at the time of sale for future forecast returns of sales of homeentertainment, etc., and deduct this from operating revenue and operating costs after estimating inaccordance with the provisions related to variable consideration.
With regard to construction contracts for road civil engineering works under road maintenance, repair
and cleaning services, the percentage-of-completion method was previously applied to construction
contracts whose outcome was deemed certain, while the completed-contract method was applied toother construction contracts. However, revenue is now recognized over a certain period of time, basedon the percentage of completion measured by the ratio of the cost of construction incurred to the total
estimated cost of construction.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to the transitional
treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of applying the new accounting policy retrospectively prior to thebeginning of the first quarter of the current fiscal year is added to or deducted from the opening balanceof the retained earnings of the first quarter of the current fiscal year, and thus the new accounting
policy is applied to such opening balance. However, in accordance with the method provided for inparagraph 86 of the Accounting Standard for Revenue Recognition, the new accounting policy was
not retrospectively applied to contracts wherein almost all revenues were recognized before thebeginning of the first quarter of the current fiscal year according to the former treatment.
For the first six months of the current fiscal year, as a result of this change, operating revenue decreasedby ¥10,405 million, operating costs decreased by ¥7,010 million, selling, general and administrative
expenses decreased by ¥3,082 million, operating profit decreased by ¥312 million, and ordinary profit
and profit before income taxes each decreased by ¥315 million. In addition, the opening balance ofthe retained earnings decreased by ¥1,250 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance- 13 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

sheet as of the end of the previous fiscal year has been included in “Notes and accounts receivable trade, and contract assets” under current assets from the quarterly consolidated balance sheet as of theend of the first quarter of the current fiscal year.
In accordance with the transitional treatment provided for in paragraph 89-2 of the AccountingStandard for Revenue Recognition, figures for the previous fiscal year have not been restated inaccordance with the new approach to presentation. Furthermore, the information on disaggregation ofrevenue from contracts with customers during the first six months of the previous fiscal year has notbeen disclosed as allowed by the transitional treatment provided for in paragraph 28-15 of the
Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020).

(Adoption of Accounting Standard for Fair Value Measurement, Etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional measuresprovided for in paragraph 19 of the Accounting Standard For Fair Value Measurement, and paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
There is no impact on the quarterly consolidated financial statements.

- 14 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(Segment information, etc.)[Segment information]I.

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.

II. Six months ended August 31, 2022
1. 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

78,1998,348

33,234

119,782570

120,353–

120,353

1,173

25

2,530

3,728

90

3,819

(3,819)–79,373

8,373

35,764

123,511660

124,172(3,819)120,353

17,245

1,101

9,521

27,869102

27,972(1,988)25,984

Total(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments and includes businesses
that operate sports facilities, etc.
2. The ¥1,988 million deducted from segment profit (loss) as adjustment consists of an addition of ¥11 million inintersegment transaction elimination, and a deduction of ¥1,999 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.

2. Disclosure of changes, etc. in reportable segments
As described in “Changes in accounting policies, etc.” the Company has applied the AccountingStandard for Revenue Recognition, etc. from the beginning of the first quarter of the current fiscal
year, and changed the accounting treatment for revenue recognition. Accordingly, the Company haschanged the method of measuring profit or loss of operating segments.

- 15 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

For the first six months of the current fiscal year, as a result of this change, and compared with thefigures obtained by the previous method, net sales and segment profit decreased by ¥9,625 millionand ¥289 million, respectively, for the Cinema business, and net sales and segment profit decreasedby ¥321 million and ¥14 million, respectively, for the Real Estate business.

- 16 -TOHO CO., LTD. (9602)
Consolidated financial results for the six months ended August 31, 2022

(Significant subsequent events)(Acquisition of company, etc. through share purchase)
At its meeting of the Board of Directors held on September 27, 2022, the Company resolved topurchase all shares of AID-DCC Inc. (“AID-DCC”) and make it a subsidiary.

(1) Purpose of share purchase
The Group has embarked on efforts for promoting investment for growth encompassing mergers
and acquisitions. This involves enlisting key areas of focus with respect to its growth strategy(“planning and intellectual property,” “anime business,” “digital technologies” and “overseas
markets”), underpinned by the corporate slogan, “Entertainment for YOU, inspiring customers
around the world” cited in “The TOHO VISION 2032 TOHO Group Management Corporate
Strategy,” drawn up in April 2022. AID-DCC is a one-stop provider of services encompassing
everything from planning, development and marketing associated with digital promotions andbranding, and extending to administration of social media advertising, which involves enlisting its
strengths with respect to using innovative digital technologies and engaging in sophisticated creation
initiatives that give rise to new forms of communications. In recent years, AID-DCC has beencreating new markets for intellectual property, which has entailed adding idea- and technologybased experiences to existing intellectual property, with a focus on the entertainment business inareas such as attraction planning and development. The Company made the decision to purchase
AID-DCC’s shares upon having deemed that various synergies utilizing digital technologies arelikely to emerge by making AID-DCC part of the Group.

(2) Name, business description, and scale of company subject to acquisition
Name of the acquiree :AID-DCC Inc.

Business description :Planning, production and operation of advertising promotions; website
planning, production, and operation, and; planning and production of
spatial design, events and experience-based entertainment

Share capital¥20 million:(3) Timing of share purchase
October 19, 2022 (planned)(4) Number of shares subject to purchase, purchase price and ownership ratio after purchase
Number of shares subject to purchase: 2,000 shares
Purchase price:

Whereas the shareholder is an individual whose name shallnot be disclosed per request of the individual, the shares areto be purchased at fair value in alignment with a third-party
assessment conducted to determine the share value.

Ownership ratio after purchase:100%- 17 -