company name: listed stock exchange: tse 1sanrio company, ltd

July 31, 2015

Summary of Financial Results for the First Quarter of Fiscal Year Ending March 31, 2016 (FY2015)

(Three Months Ended June 30, 2015)

[Japanese GAAP]

Company name: Sanrio Company, Ltd. Listed Stock Exchange: TSE 1st Section

Stock code: 8136 URL: http://www.sanrio.co.jp/english/corporate/ir/

Representative: Shintaro Tsuji, President and Chief Executive Officer

Inquiries: Susumu Emori, Managing Director TEL: +81-3-3779-8058

Scheduled date of filing of Quarterly Report: August 14, 2015

Starting date of dividend payment: -

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results meeting: None

Note: The original disclosure in Japanese was released on July 31, 2015 at 16:00 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of FY2015 (April 1, 2015 – June 30, 2015)

(1) Consolidated results of operations (Percentages represent year-on-year changes)

Sales Operating Profit Ordinary Profit Net Profit Attributable

to Owners of Parent

Millions of yen % Millions of yen % Millions of yen % Millions of yen %

Three months ended Jun. 30, 2015 17,049 (5.2) 3,469 (19.6) 3,623 (15.5) 2,806 0.0

Three months ended Jun. 30, 2014 17,994 4.4 4,316 (7.7) 4,288 3.8 2,805 6.5

Note: Comprehensive income (millions of yen) Three months ended Jun. 30, 2015: 968 (down 57.9%)

Three months ended Jun. 30, 2014: 2,299 (down 51.4%)

Net Profit per Share Fully-Diluted Net Profit per Share

Yen Yen

Three months ended Jun. 30, 2015 32.21 -

Three months ended Jun. 30, 2014 31.92 -

(2) Consolidated financial position

Total Assets Net Assets Equity Ratio

Millions of yen Millions of yen %

As of Jun. 30, 2015 117,856 63,885 54.0

As of Mar. 31, 2015 122,124 66,269 54.0

Reference: Shareholders’ equity (millions of yen) As of Jun. 30, 2015: 63,586 As of Mar. 31, 2015: 65,981

2. Dividends

Dividend per Share

1Q-end 2Q-end 3Q-end Year-end Total

Yen Yen Yen Yen Yen

FY2014 - 40.00 - 40.00 80.00

FY2015 -

FY2015 (forecast) 40.00 - 40.00 80.00

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecasts for FY2015 (April 1, 2015 – March 31, 2016)

(Percentages represent year-on-year changes)

Sales Operating Profit Ordinary Profit Net Profit Attributable to Owners of Parent

Net Profit per Share

Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen

First half 35,600 0.2 7,400 (12.6) 7,400 (18.0) 5,000 (17.3) 57.81

Full year 75,400 1.1 17,000 (2.7) 17,100 (7.7) 11,500 (10.2) 134.14

Note: Revisions to the most recently announced consolidated forecasts: None

* Notes

(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None

Newly added: - Excluded: -

(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None

(3) Changes in accounting policies and accounting-based estimates, and restatements

1) Changes in accounting policies due to revisions in accounting standards, others: Yes

2) Changes in accounting policies other than 1) above: None

3) Changes in accounting-based estimates: None

4) Restatements: None

(4) Number of outstanding shares (common stock)

1) Number of outstanding shares at the end of period (including treasury stock)

As of Jun. 30, 2015: 89,065,301 shares As of Mar. 31, 2015: 89,065,301 shares

2) Number of shares of treasury stock at the end of period

As of Jun. 30, 2015: 1,911,639 shares As of Mar. 31, 2015: 1,911,534 shares

3) Average number of shares outstanding during the period

Three months ended Jun. 30, 2015: 87,153,731 shares Three months ended Jun. 30, 2014: 87,904,011 shares

Note 1: Information regarding the implementation of quarterly review procedures

The current quarterly financial statements in this summary are exempted from quarterly review procedures based on the

Financial Instruments and Exchange Act. At the time of disclosure of this report, the review procedures for these quarterly

financial statements have not been completed.

Note 2: Cautionary statement with respect to forward-looking statements and other special items

Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information

currently available to the Company. These materials are not promises by the Company regarding future performance. Actual

results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on

Quarterly Consolidated Financial Performance, (3) Qualitative information regarding forecasts for consolidated business

results” on page 5 of the attachments for forecast assumptions and notes of caution for usage.

Forecasts for the first half and full year net profit per share are calculated by taking into account the increase in the number of

shares of treasury stock as a result of the tender offer as shown in “Subsequent Events” on page 12.

Sanrio Company, Ltd. (8136) Financial Results for the First Quarter of FY2015

1

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance 2

(1) Qualitative information regarding consolidated business results 2

(2) Qualitative information regarding consolidated financial position 5

(3) Qualitative information regarding forecasts for consolidated business results 5

2. Matters Related to Summary Information (Notes) 6

(1) Changes in consolidated subsidiaries during the period 6

(2) Application of special accounting methods for presenting quarterly consolidated financial statements 6

(3) Changes in accounting policies and accounting-based estimates, and restatements 6

3. Quarterly Consolidated Financial Statements 7

(1) Consolidated Balance Sheets 7

(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements 9

Consolidated Income Statements 9

Consolidated Comprehensive Income Statements 10

(3) Notes to Quarterly Consolidated Financial Statements 11

Going Concern Assumption 11

Significant Changes in Shareholders’ Equity 11

Segment and Other Information 11

Subsequent Events 12


2

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Qualitative information regarding consolidated business results

During the first quarter under review (overseas: January 1 to March 31, 2015; within Japan: April 1 to June 30,

2015), the global economy performed as follows. In North America the economy slowed due to sluggish

consumption resulting from a cold snap at the start of the 2015 (as also happened the previous year) and a port strike

on the west coast turning real GDP negative for the first time in a year. In Europe, cheap oil prices from the latter

half of 2014 led to a rise in consumer spending and a mild recovery ensued.

The economic growth slowed in China, but a rally in final consumption expenditure supported its economy.

Meanwhile, some of the emerging countries show signs of recovery but generally the slowdown and stagnation

continued.

The Japanese economy saw higher sales in the retail sector from the effect of foreign tourists but generally remained

sluggish due to such factors as a predicted fall in consumer spending to below the level for the previous first quarter.

Strong performances from Asian countries, especially China, were unable to cover the shortfall in product licensing

income from the poorly performing regions of the United States and Europe. As a result, sales fell 5.2% year-on-year

to 17 billion yen in the first quarter of the current fiscal year, and operating profit was 3.4 billion yen, a year-on-year

fall of 19.6%.

Ordinary profit fell, but the decline was limited to 15.5% year-on-year, to 3.6 billion yen because of the

improvement in foreign exchange gain. The Group gained 300 million yen on sales of investment securities amid a

buoyant stock market. Income taxes payable fell overall due to a decline of net profit before income taxes and other

adjustments in the United States and Europe, where tax rates are high, more than offsetting a rise in Asia, where they

are low. Net profit attributable to owners of parent remained at 2.8 billion yen, the same level as in the previous first

quarter.

Amid these conditions, strong showings in the domestic market derived from sales to foreign tourists and the

popularity of the new characters Gudetama, Kirimi-chan, and Show by Rock!!, which both rose sharply. Further

profit is expected from these areas from the second quarter onward.

Furthermore, since the accounting period for all overseas consolidated subsidiaries runs from January to December,

the first quarter under review for these subsidiaries covers the period from January to March 2015.

Reportable Segment (100 millions of yen)

Sales Segment profit (operating profit)

First three months of FY2014 FY2015 Increase/

decrease Change % FY2014 FY2015

Increase/

decrease Change %

Japan

Product sales/others 88 83 (4) (5.5)%

26 22 (4) (15.4)% Royalties 20 22 1 8.5%

Total 109 106 (3) (2.9)%

Europe


6 4 (2) (31.1)% Royalties 21 17 (3) (16.2)%

Total 21 17 (3) (17.0)%

North

America


6 2 (4) (59.9)% Royalties 20 13 (7) (36.7)%

Total 24 16 (8) (35.0)%

Latin

America

Product sales/others 0 0 0 207.2%

1 1 (0) (40.4)% Royalties 4 3 (1) (28.5)%

Total 4 3 (1) (27.1)%

Asia

Product sales/others 4 6 2 61.1%

6 8 2 43.2% Royalties 14 19 4 33.6%

Total 18 26 7 39.7%

Adjustment - - - - (4) (4) (0) -

Consolidated


43 34 (8) (19.6)% Royalties 82 76 (5) (6.9)%

Total 179 170 (9) (5.2)%


3

Note: Regional subsidiaries overseas pay the amount of royalties commensurate as the cost of sales while the Japanese parent

company (the copyright holder) calculates this income as sales. Because consolidated transactions are eliminated, however,

these are not included in Japan’s sales figures as stated above (although included in operating profit).

Further, the above sales figures are “sales to customers,” and the inter-segment sales, which are not limited to the

above-mentioned royalties, are eliminated as internal transaction sales.

i. Japan: Sales fell 2.9% year-on-year to 10.6 billion yen and operating profit fell 15.4% to 2.2 billion yen

The main reason for the fall in sales and profits is that event sales in convenience stores of the “other business”

category were transferred to the second quarter and beyond. Meanwhile, digital content sales were doubled as

Gudetama-related items performed well.

In the domestic licensing business, there were strong sales for goods aimed at tourists visiting from overseas such as

the Cheki instant camera, as well as product licenses for the Post Office’s promotional goods, and cosmetic goods

including facial cleansers and powders. Additionally, new licensees for Gudetama and animated broadcasts of Show

by Rock!!, which started from April, have been acquired and numbers have expanded through cafés and other

promotional licenses.

In the domestic product sales business, strong sales were achieved mainly at city center stores as overseas tourist

numbers rose. The licensed products Cheki and Wet Tissue Die-Cut Cases performed well. Regarding characters,

Gudetama proved popular with a wide range of age groups and character collaboration products with Hello Kitty and

The Very Hungry Caterpillar, sold chiefly at department stores, became popular as gifts. Sales in regional and

suburban areas that have been struggling since the previous fiscal year are also recovering gradually. As a result,

same-store sales (based on directly owned stores and directly operated shops within department stores) performed at

105.1% of the previous year’s level.

Regarding initiatives for the thriving inbound tourist market, we are aiming to expand the number of duty-free stores

from the current figure of 15 and continue to secure the market while increasing the lineup of Japanese-made

products. Regarding store initiatives, the opening of a Little Twin Stars (Kiki and Lala) specialist store named “Kiki

and Lala—Yumeseiun Omoiyariboshi” (“The Star of Compassion in the Galaxy of Dreams”) in Osaka’s Lucua 1100

early April and a store on the ladies’ fashion floor of the Daimaru Umeda. In July, large scale street-side store Sanrio

Gallery Kyoto Store was opened in Kyoto. We will continue initiatives to attract new customers.

In the theme parks business, at Harmony Land in Oita prefecture, visitor numbers rose by 12,000, or 16.7%,

year-on-year to 87,000. The roof facility in the parade area neutralized the impact of unseasonal weather during the

period under review (10 days more rain fell than during the same period of the previous year), especially for

kindergarten and preschool groups. Costs increased due to stronger publicity accompanying an expansion of

business areas and depreciation with other expenses accompanying the roof and parade renewal, leading to a slightly

raised operating loss. Looking to the summer season, we aim to improve profitability over the full year by

comprehensively publicizing the roof facility and endeavoring to attract new customer groups from the Miyazaki

and Kitakyushu areas due to the extension of the East Kyushu Expressway.

At Sanrio Puroland in Tokyo’s Tama City, visitor numbers rose by 48,000, or 31.3%, year-on-year to a total of

202,000 due to the popularity of My Melody’s 40th anniversary parade and other events, which started in January

2015, and events such as dress-up, zombie, and TV celebrity fan meets. This rise, combined with limiting the selling,

general, and administrative costs to the previous year’s level, led to a great improvement in the operating loss

figures. Among theme parks business overall, visitor numbers rose by 60,000, or 26.5%, year-on-year to 289,000

and sales rose 21.7% year-on-year to 1.4 billion yen while the operating loss improved by 100 million yen to a total

of 100 million yen.

ii. Europe: Sales fell 17.0% year-on-year to 1.7 billion yen and operating profit fell 31.1% to 0.4 billion yen

The fall in sales in the key Western European nations exceeded the rise in Eastern Europe, the Middle East, and

other regions. In terms of product category, sales rose for foods but fell for the mainstay apparel, toys, and

household supplies. As part of the marketing drive, Hello Kitty took on the role of Japanese ambassador for the 2015

Milan Expo, made guest appearances at concerts of famous musicians, and featured in wrapping to the subway and

other public facilities. By increasing Hello Kitty’s exposure in such ways, the Group aims to increase the penetration

of character brands with the aim of bottoming out during this fiscal year in line with the initial budget.


4

iii. North America: Sales fell 35.0% year-on-year to 1.6 billion yen and operating profit fell 59.9% to 0.2 billion yen

In the United States, product license sales fell amid sluggish retail sales due to a second successive year of record

cold waves and increasingly fierce competition. Additionally, selling, general, and administrative expenses rose for

new forms of marketing including cafés and live shows, which caused profits to fall sharply. By category, sales fell

for the leading types of apparel, toys, and accessories. For future initiatives, we will raise brand recognition for

Gudetama, My Melody, and Little Twin Stars and promote multi-character strategies.

iv. Latin America: Sales fell 27.1% year-on-year to 0.3 billion yen and operating profit fell 40.4% to 0.1 billion yen

Sales and profits fell in Latin America due to an economic downturn across the whole region. By category, apparel,

shoes, and bags performed poorly. As future initiatives, the Group aims to acquire new category licenses such as

baby goods and to expand product license categories while holding events among general consumers to increase

character recognition and grow sales by acquiring corporate promotional licenses.

v. Asia: Sales rose 39.7% year-on-year to 2.6 billion yen and operating profit rose 43.2% to 0.8 billion yen

In Asia, sales and profits rose in Hong Kong, China, and Taiwan while sales rose alongside falling profits in South

Korea.

In Hong Kong, product sales fell due to the partial transfer of Chinese-manufactured export sales to the Shanghai

subsidiary while sales of product license also fell as tourism from the Chinese mainland diminished and

consumption slowed. Nonetheless, novelty goods were adopted at fast food chains and corporate promotion sales at

cafés and events performed well. Regarding other regions, sales fell in Thailand, which had special orders for

financial institutions last year, while in Singapore and Malaysia sales promotions for post offices did well, leading to

a rise in sales.

In Taiwan, Gudetama proved very popular, and the adopting of My Melody and Little Twin Stars for large-scale

convenience store campaigns increased performances. By category, household supplies, health and beauty goods,

and toys expanded.

In China, the number of product categories rose and license sales performed well as master licensee KTL (Hong

Kong’s Li & Fung group) increased its sub-licensee numbers threefold. In particular, licensees for pure gold

accessories continued to grow, and expansion occurred over a wide range of categories including apparel, household

supplies, foods, and shoes. Moreover, the Group has been steadily cultivating new license fields including cafés and

karaoke shops.

In South Korea, sales rose despite a worsening consumption environment including a continuing year-on-year slump

in store sales among volume retailers. By category, shoe sales suffered due to reasons including the transfer to

volume retailers’ private brand policy but sales rose for consumer electronics, toys, and foods. The Group is aiming

to expand sales channels through strengthening sales capabilities.


5

Reference:

Sales and operating profit by overseas subsidiary (local currency before consolidation eliminations on an unconsolidated basis)

(Unit: thousand) Sales

Operating profit Royalties Product sales Total

Germany (EUR) 11,523 159 11,682 2,756

Year-on-year change (%) (16.4) (48.7) (17.1) (38.6)

Britain (GBP) 1,890 36 1,926 508

Year-on-year change (%) 87.9 29.8 86.3 205.6

North America (USD) 10,981 2,691 13,671 2,349


Brazil (BRL) 8,577 27 8,604 2,432


Chile (Peso) - 41,288 41,288 36,150

Year-on-year change (%) - 137.2 137.2 141.7

Hong Kong (HKD) 27,678 40,026 67,705 15,884

Year-on-year change (%) (7.2) (38.7) (28.8) 9.9

Taiwan (NTD) 110,682 12,441 123,122 40,504


South Korea (KRW) 2,574,481 678,762 3,253,243 1,075,896

Year-on-year change (%) (17.6) 236.2 (2.2) (18.4)

Shanghai (CNY) 38,098 22,932 61,030 18,636


(2) Qualitative information regarding consolidated financial position

At the end of the first quarter of the current fiscal year, total assets stood at 117.8 billion yen, a decrease of 4.2

billion yen from the end of the previous fiscal year. The main increasing factor was investments securities of 3

billion yen. The main decreases were 3.1 billion yen in cash and deposit, 1.8 billion yen in trade notes and accounts

receivable, and 1 billion yen in other under investments and other assets.

Liabilities decreased 1.8 billion yen to 53.9 billion yen. The main decreasing factor was accrued income taxes of 1.6

billion yen. The net assets section posted a decrease of 2.3 billion yen to 63.8 billion yen. There were increases of

2.8 billion yen in retained earnings from net profit attributable to owners of parent, and 0.6 billion yen in net

unrealized gain on other securities. On the other hand, there were decreases of 3.4 billion yen in retained earnings

due to dividend payments, and 2.5 billion yen in foreign currency translation adjustments. The equity ratio was

54.0%, the same as at the end of the previous fiscal year.

(3) Qualitative information regarding forecasts for consolidated business results

As stated above, in the first-quarter results we anticipate sales from signs of recovery in Europe, profits from new

characters in North America, and ongoing growth in Asia. In Japan, performance is expected to improve as we

foresee profits from animated broadcasts of Show By Rock!! and the number of foreign tourists is rising sustainably.

Nevertheless, we cannot guarantee that these factors will be reflected in the figures, and in the Japanese economy

overall, the movement of consumer spending remains uncertain due to such factors as rising prices for imported

products caused by the weak yen. Accordingly, we have decided to leave unchanged the first-half and full-year

forecasts released on May 15, 2015.


6

Reference: Overseas Sales and Profits for the Past Three-month Periods by Area (Millions of yen)

Sales to customers Operating profit

Three months

ended

Areas

Jun. 2013 Jun. 2014

Jun. 2015

Jun. 2013 Jun. 2014

Jun. 2015

Change

(%)

Change

(%)

Change

(%)

Change

(%)

North

America U.S.A. 2,490 2,499 0.4 1,625 (35.0) 907 699 (22.9) 280 (59.9)

Latin

America Brazil/Chile 521 494 (5.3) 360 (27.1) 154 181 17.6 108 (40.4)

Asia

Hong Kong 896 776 (13.4) 1,020 31.4 160 192 19.4 257 33.7

Taiwan 281 343 22.0 439 27.9 71 117 64.5 153 30.9

South Korea 274 322 17.6 351 9.0 120 127 6.5 117 (8.4)

China 284 440 54.6 818 85.9 117 180 53.9 357 97.9

Subtotal 1,737 1,882 8.4 2,630 39.7 469 618 31.6 885 43.2

Europe Germany 1,979 1,992 0.6 1,586 (20.3) 613 634 3.4 375 (40.9)

Britain 166 169 1.5 206 22.0 50 38 (24.1) 88 132.2

Subtotal 2,146 2,161 0.7 1,793 (17.0) 664 673 1.3 463 (31.1)

Total 6,896 7,038 2.1 6,409 (8.9) 2,195 2,172 (1.0) 1,738 (20.0)

2. Matters Related to Summary Information (Notes)

(1) Changes in consolidated subsidiaries during the period

Not applicable.

(2) Application of special accounting methods for presenting quarterly consolidated financial statements

Not applicable.

(3) Changes in accounting policies and accounting-based estimates, and restatements

Changes in Accounting Policies

Effective from the first quarter of the current fiscal year, the Company has adopted the “Accounting Standard for

Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013),

“Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),

“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013) and other standards.

In association with these changes, the presentation of net income has been revised and the minority interests item

has been renamed non-controlling interests. For consistency with these changes, the consolidated financial

statements for the first quarter of the previous fiscal year and the previous fiscal year have been revised.


7

3. Quarterly Consolidated Financial Statements

(1) Consolidated Balance Sheets

(Millions of yen)

FY2014

(As of Mar. 31, 2015)

First quarter of FY2015

(As of Jun. 30, 2015)

Assets

Current assets

Cash and deposit 54,816 51,697

Trade notes and accounts receivable 11,567 9,738

Merchandise and finished goods 3,734 3,381

Work in process 24 25

Raw materials and supplies 158 172

Other accounts receivable 1,947 1,523

Other 2,196 2,109

Allowance for doubtful accounts (133) (119)

Total current assets 74,311 68,528

Fixed assets

Tangible fixed assets

Buildings and structures, net 7,137 6,936

Land 10,009 9,984

Other, net 1,745 1,682

Total tangible fixed assets 18,891 18,602

Intangible fixed assets 5,254 5,439

Investments and other assets

Investments securities 11,153 14,230

Deferred tax assets 3,018 2,560

Other 11,560 10,512

Allowance for doubtful accounts (2,162) (2,103)

Total investments and other assets 23,569 25,199

Total fixed assets 47,714 49,241

Deferred assets 97 85

Total assets 122,124 117,856

Liabilities

Current liabilities

Trade notes and accounts payable 4,821 4,089

Short-term borrowings 8,380 8,762

Accrued income taxes 2,715 1,068

Allowance for bonuses 483 741

Reserve for adjustment of returned goods 41 37

Other 12,931 13,156

Total current liabilities 29,373 27,854

Long-term liabilities

Corporate bonds 5,694 5,114

Long-term borrowings 8,567 9,229

Reserve for retirement benefits for directors 414 -

Provision for loss on guarantees 14 8

Net defined benefit liability 9,435 9,054

Other 2,355 2,709

Total long-term liabilities 26,481 26,115

Total liabilities 55,855 53,970


8

(Millions of yen)

FY2014

(As of Mar. 31, 2015)

First quarter of FY2015

(As of Jun. 30, 2015)

Net assets

Shareholders’ equity

Capital 10,000 10,000

Capital surplus 3,423 3,423

Retained earnings 53,087 52,542

Treasury stock (4,800) (4,800)

Total shareholder’s equity 61,710 61,165

Accumulated other comprehensive income

Net unrealized gain (loss) on other securities 1,145 1,804

Deferred hedge gain (loss) 13 7

Foreign currency translation adjustments 5,643 3,047

Remeasurements of defined benefit plans (2,531) (2,438)

Total accumulated other comprehensive income 4,270 2,420

Stock acquisition rights 165 165

Non-controlling interests 121 133

Total net assets 66,269 63,885

Total liabilities and net assets 122,124 117,856


9

(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements

Consolidated Income Statements

(For the Three-month Period)

(Millions of yen)

First three months of FY2014

(Apr. 1, 2014 – Jun. 30, 2014)


(Apr. 1, 2015 – Jun. 30, 2015)

Sales 17,994 17,049

Cost of sales 5,968 5,519

Gross profit 12,025 11,530

Reversal from reserve for adjustment of returned goods 9 4

Net gross profit on sales 12,034 11,534

Selling, general and administrative expenses 7,717 8,064

Operating profit 4,316 3,469

Non-operating profit

Interest income 98 106

Dividend income 27 45

Other income 43 120

Total non-operating profit 169 273

Non-operating expenses

Interest expense 78 70

Foreign exchange loss 55 -

Listing expenses 28 31

Other 35 17

Total non-operating expenses 198 119

Ordinary profit 4,288 3,623

Extraordinary gains

Gain on sales of fixed assets 0 0

Gain on sales of investment securities 10 362

Total extraordinary gains 10 363

Extraordinary losses

Loss on disposal of fixed assets 0 6

Total extraordinary losses 0 6

Net profit before income taxes and other adjustments 4,297 3,980

Income taxes – current 1,205 960

Income taxes – deferred 277 202

Total income taxes 1,483 1,162

Net profit 2,814 2,817

Net profit attributable to non-controlling interests 8 10

Net profit attributable to owners of parent 2,805 2,806


10

Consolidated Comprehensive Income Statements

(For the Three-month Period)

(Millions of yen)


(Apr. 1, 2014 – Jun. 30, 2014)


(Apr. 1, 2015 – Jun. 30, 2015)

Net profit 2,814 2,817

Other comprehensive income

Net unrealized gain (loss) on other securities 334 658

Deferred hedge gain (loss) (17) (6)

Foreign currency translation adjustments (911) (2,594)

Remeasurements of defined benefit plans, net of tax 79 92

Total other comprehensive income (514) (1,848)

Comprehensive income 2,299 968

Comprehensive income attributable to

Comprehensive income attributable to owners of

parent 2,292 956

Comprehensive income attributable to

non-controlling interests 7 11


11

(3) Notes to Quarterly Consolidated Financial Statements

Going Concern Assumption

Not applicable.

Significant Changes in Shareholders’ Equity

First three months of FY2015 (Apr. 1, 2015 – Jun. 30, 2015)

Not applicable.

Segment and Other Information

I. First three months of FY2014 (Apr. 1, 2014 – Jun. 30, 2014)

Information related to sales and profit or loss for each reportable segment (Millions of yen)

Reportable segment Adjustment

(Note 1)

Amounts shown

on consolidated income statements

(Note 2) Japan Europe

North

America

Latin

America Asia Total

Sales

Customers 10,956 2,161 2,499 494 1,882 17,994 - 17,994

(Royalty income) ( 2,075) ( 2,113) ( 2,059) ( 491) ( 1,464) ( 8,205) ( -) ( 8,205)

Inter-segment 2,575 4 10 0 500 3,091 (3,091) -

(Royalty income) ( 2,444) ( 4) ( 10) ( 0) ( 12) ( 2,471) ( (2,471)) ( -)

Total 13,532 2,166 2,509 494 2,383 21,086 (3,091) 17,994

Segment profit 2,602 673 699 181 618 4,775 (458) 4,316

Notes: 1. The 458 million yen adjustment to segment profit is the sum of eliminations for inter-segment transactions and

unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any

particular segment.

2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements.

II. First three months of FY2015 (Apr. 1, 2015 – Jun. 30, 2015)

Information related to sales and profit or loss for each reportable segment (Millions of yen)

Reportable segment Adjustment

(Note 1)

Amounts shown on consolidated

income statements (Note 2)

Japan Europe North

America

Latin

America Asia Total

Sales

Customers 10,640 1,793 1,625 360 2,630 17,049 - 17,049

(Royalty income) ( 2,252) ( 1,771) ( 1,304) ( 351) ( 1,956) ( 7,636) ( -) ( 7,636)

Inter-segment 2,244 14 8 6 500 2,774 (2,774) -

(Royalty income) ( 2,173) ( 12) ( 8) ( 6) ( 19) ( 2,221) ( (2,221)) ( -)

Total 12,884 1,807 1,634 366 3,131 19,824 (2,774) 17,049

Segment profit 2,201 463 280 108 885 3,940 (470) 3,469

Notes: 1. The 470 million yen adjustment to segment profit is the sum of eliminations for inter-segment transactions and

unallocated operating expenses that are mostly general and administrative expenses that cannot be assigned to any

particular segment.

2. Segment profit is adjusted to be consistent with operating profit shown on the consolidated income statements.


12

Subsequent Events

The Company had conducted tender offer to repurchase stock beginning from June 12, 2015 following the resolution

of its Board of Directors on June 11, 2015 for tender offer to repurchase stock with a specific conditions pursuant to

Article 156, Paragraph 1 of the Companies Act (Act No. 86 of 2005, as amended), which is applicable in lieu of

Article 165, Paragraph 3, and the Company’s Articles of Incorporation. This tender offer has been completed as of

July 10, 2015.

1. Results of the tender offer

(1) Type of listed stock to be purchased

Common stock

(2) Purchase period

June 12, 2015 to July 10, 2015

(3) Purchase price

3,030 yen per share of common stock

(4) Commencement date of the settlement

August 4, 2015

(5) Number of stocks purchased

Type of stock Planned number of

shares to be purchased Planned number of

shares to be exceeded Number of shares

offered Shares repurchased

Common stock 2,500,000 shares - share 2,306,400 shares 2,306,400 shares

2. Summary of the stock repurchase

1. Details

(1) Type of shares to be repurchased

Common stock

(2) Total number of shares to be repurchased

2,306,400 shares

(3) Total value of shares to be repurchased

6,988,392,000 yen

(4) Date of purchase

August 4, 2015

This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

company name: listed stock exchange: tse 1sanrio company, ltd

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