Earnings Presentation Materials for the 66th Fiscal Period (Fiscal Year Ending March 2026) | Sanrio Company,Ltd. (8136) timely disclosure

Worth reading

64In focus

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

33.9

Year-on-year change in net sales (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFiscal year ending March 2026, full year14 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥194,088 million+33.9%

Operating profit¥77,859 million+50.3%

Ordinary income¥79,335 million+48.4%

Net income¥54,608 million+30.9%

Gross Profit Margin77.3 %

Operating profit margin40.1 %

Selling, general and administrative expenses¥72,203 million

Full-year earnings forecast

Net Sales

¥229,800 million

Gross profit

¥178,600 million

Operating profit

¥89,500 million

Adjusted operating profit

¥88,800 million

Ordinary income

¥90,200 million

Net income

¥63,800 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Generally progressing as planned

Key points of the Q&AKey questions raised by investors at the briefing and the company's answers

Questions Shareholder returns policy / Answer The basic policy is to maintain stable and continuous dividends, with a payout ratio of at least 30% as a guideline. If investment opportunities are limited, shareholder returns of up to ¥30 billion will also be considered.
Questions Priority between short-term performance and medium- to long-term growth / Answer The company expects operating profit to grow by approximately 15% in the fiscal year ending March 2027, while balancing single-year performance with medium- to long-term growth and making strategic investments.
Questions Update to the medium-term management plan / Answer Disclosure based on the medium-term plan will end with the fiscal year ending March 2027. Going forward, the company will disclose progress on its long-term vision, whose final fiscal year is the fiscal year ending March 2035.
Questions Outlook for the games business / Answer The contribution to earnings in the current fiscal year will be limited. The first title will be released in autumn 2026, with a long-term target of approximately 10 titles over 3 years.
Questions Middle East situation / Answer The company recognizes that the impact on performance is limited at this point, but will closely monitor the impact on raw material prices, procurement conditions and demand.
Questions Impact of AI / Answer No direct impact on performance is expected. AI will be introduced in certain operations, and its use will be considered cautiously, with brand value given priority.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Increase in accounts receivable¥27 hundred million
Increase in merchandise and finished goods¥39 hundred million
Decrease in convertible bonds with stock acquisition rights¥210 hundred million
Decrease in short- and long-term borrowings and bonds¥52 hundred million
Increase in retained earnings¥391 hundred million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

155 JPY/USD
AssumptionsUSD/JPY
185 JPY/EUR
AssumptionsEuro/Japanese yen
22.5 JPY/CNY
AssumptionsChinese yuan/Japanese yen

New initiatives

Correction of prior-year securities reports following the inappropriate compensation issue involving a former managing director
Strengthening of compensation controls, subsidiary management, internal audits and training across the group
Launch of the company’s own game brand, “Sanrio Games,” and release of “Sanrio Partyland”
Opening of the permanent VR theme park “Virtual Sanrio Puroland” in December 2025
Plan to transform Oita Harmonyland into an entertainment resort
Joint film production with Warner Bros., scheduled for release in July 2028

Key KPIsA metric the company considers important as a management benchmark.

Sanrio Time: Togetherness Time1,644 100 million hours/year
Year on year against the same period last year1.5x
Sanrio Time: Immersion Time5 100 million hours/year
Year on year against the same period last yearFlat
Number of stores in China59 Location
Year on year against the same period last year+31 stores
YouTube subscribers for “HELLO KITTY AND FRIENDS”520 10,000 people
Number of new IP launches originating in China30 IP

Segment results

Japan
Net Sales¥148,250 million (YoY +31.2%)
Adjusted operating profit¥53,843 million (YoY +47.1%)
Contribution profit¥20,234 million (YoY +72.6%)
Europe
Net Sales¥11,721 million (YoY +83.6%)
Adjusted operating profit¥2,328 million (YoY +45.5%)
Contribution profit¥7,360 million (YoY +113.3%)
Americas (North and South America)
Net Sales¥31,062 million (YoY +5.4%)
Adjusted operating profit¥10,494 million (YoY -4.2%)
Contribution profit¥22,967 million (YoY +1.4%)
Asia
Net Sales¥45,539 million (YoY +62.6%)
Adjusted operating profit¥15,515 million (YoY +71.1%)
Contribution profit¥28,313 million (YoY +58.2%)

Medium-term management plan targets

A three-year plan ending in the fiscal year ending March 2027. Growth investment budget of at least ¥50 billion. Specific performance targets for the final fiscal year are Not disclosed in this presentation.

Financial targets

ROE

Actual results41.6 %

Equity ratio

Actual results66.4 %

Market Size / Share

RegionJapan
Market shareApproximately 19%
TargetUp to +5 percentage points by the fiscal year ending March 2035
RegionChina
Market shareApproximately 16%
TargetUp to +5 percentage points by the fiscal year ending March 2035
RegionNorth America
Market shareApproximately 4%
Target10% by the fiscal year ending March 2035
RegionEurope
Market shareApproximately 1%
TargetUp to +5 percentage points by the fiscal year ending March 2035

Number of stores and locations

Number of stores in China

Closing level59 Location

Change during the periodYear-on-year increase of 31 stores

Annual Dividend

Annual dividend per share¥69

Payout ratio

30.4

Acquisition of treasury shares

The company is considering and executing flexible share repurchases. The repurchase amount, number of shares and period are Not disclosed.

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Fiscal year ending March 2026, full year
Net Sales	¥194,088 million (YoY +33.9%)
Operating profit	¥77,859 million (YoY +50.3%)
Ordinary income	¥79,335 million (YoY +48.4%)
Net income	¥54,608 million (YoY +30.9%)
Gross Profit Margin	77.3 %
Operating profit margin	40.1 %
Selling, general and administrative expenses	¥72,203 million
Full-year earnings forecast	Net Sales ¥229,800 million / Gross profit ¥178,600 million / Operating profit ¥89,500 million / Adjusted operating profit ¥88,800 million / Ordinary income ¥90,200 million / Net income ¥63,800 million
Self-assessment against the plan	Generally progressing as planned
Segment results	Segment Japan / Net Sales ¥148,250 million (YoY +31.2%) / Adjusted operating profit ¥53,843 million (YoY +47.1%) / Contribution profit ¥20,234 million (YoY +72.6%), Segment Europe / Net Sales ¥11,721 million (YoY +83.6%) / Adjusted operating profit ¥2,328 million (YoY +45.5%) / Contribution profit ¥7,360 million (YoY +113.3%), Segment Americas (North and South America) / Net Sales ¥31,062 million (YoY +5.4%) / Adjusted operating profit ¥10,494 million (YoY -4.2%) / Contribution profit ¥22,967 million (YoY +1.4%), Segment Asia / Net Sales ¥45,539 million (YoY +62.6%) / Adjusted operating profit ¥15,515 million (YoY +71.1%) / Contribution profit ¥28,313 million (YoY +58.2%)
Breakdown of Factors Affecting the Change	Factors Increase in accounts receivable / Amount ¥27 hundred million, Factors Increase in merchandise and finished goods / Amount ¥39 hundred million, Factors Decrease in convertible bonds with stock acquisition rights / Amount ¥210 hundred million, Factors Decrease in short- and long-term borrowings and bonds / Amount ¥52 hundred million, Factors Increase in retained earnings / Amount ¥391 hundred million
Key KPIs	Indicator name Sanrio Time: Togetherness Time / Value 1,644 100 million hours/year / Year on year against the same period last year 1.5x, Indicator name Sanrio Time: Immersion Time / Value 5 100 million hours/year / Year on year against the same period last year Flat, Indicator name Number of stores in China / Value 59 Location / Year on year against the same period last year +31 stores, Indicator name YouTube subscribers for “HELLO KITTY AND FRIENDS” / Value 520 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Number of new IP launches originating in China / Value 30 IP / Year on year against the same period last year Not disclosed
Number of stores and locations	Number of stores in China Closing level 59 Location / Change during the period Year-on-year increase of 31 stores / Other Not disclosed
Assumptions Underlying the Business Outlook	Assumptions USD/JPY / Value 155 JPY/USD, Assumptions Euro/Japanese yen / Value 185 JPY/EUR, Assumptions Chinese yuan/Japanese yen / Value 22.5 JPY/CNY
Medium-term management plan targets	A three-year plan ending in the fiscal year ending March 2027. Growth investment budget of at least ¥50 billion. Specific performance targets for the final fiscal year are Not disclosed in this presentation.
Financial targets	ROE Actual results 41.6 % / Equity ratio Actual results 66.4 %
Annual Dividend	Annual dividend per share ¥69 / Interim and Year-End Breakdown Not disclosed
Payout ratio	30.4
Acquisition of treasury shares	The company is considering and executing flexible share repurchases. The repurchase amount, number of shares and period are Not disclosed.
Market Size / Share	Region Japan / Market share Approximately 19% / Target Up to +5 percentage points by the fiscal year ending March 2035, Region China / Market share Approximately 16% / Target Up to +5 percentage points by the fiscal year ending March 2035, Region North America / Market share Approximately 4% / Target 10% by the fiscal year ending March 2035, Region Europe / Market share Approximately 1% / Target Up to +5 percentage points by the fiscal year ending March 2035
Key points of the Q&A	Questions Shareholder returns policy / Answer The basic policy is to maintain stable and continuous dividends, with a payout ratio of at least 30% as a guideline. If investment opportunities are limited, shareholder returns of up to ¥30 billion will also be considered., Questions Priority between short-term performance and medium- to long-term growth / Answer The company expects operating profit to grow by approximately 15% in the fiscal year ending March 2027, while balancing single-year performance with medium- to long-term growth and making strategic investments., Questions Update to the medium-term management plan / Answer Disclosure based on the medium-term plan will end with the fiscal year ending March 2027. Going forward, the company will disclose progress on its long-term vision, whose final fiscal year is the fiscal year ending March 2035., Questions Outlook for the games business / Answer The contribution to earnings in the current fiscal year will be limited. The first title will be released in autumn 2026, with a long-term target of approximately 10 titles over 3 years., Questions Middle East situation / Answer The company recognizes that the impact on performance is limited at this point, but will closely monitor the impact on raw material prices, procurement conditions and demand., Questions Impact of AI / Answer No direct impact on performance is expected. AI will be introduced in certain operations, and its use will be considered cautiously, with brand value given priority.
New initiatives	Correction of prior-year securities reports following the inappropriate compensation issue involving a former managing director, Strengthening of compensation controls, subsidiary management, internal audits and training across the group, Launch of the company’s own game brand, “Sanrio Games,” and release of “Sanrio Partyland”, Opening of the permanent VR theme park “Virtual Sanrio Puroland” in December 2025, Plan to transform Oita Harmonyland into an entertainment resort, Joint film production with Warner Bros., scheduled for release in July 2028

Items this document does not state (7)

Results for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookCapital expendituresOrders received and order backlog

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In Japan, performance was supported by licensee promotions, exposure through owned media, and the rollout of flagship stores and original products. In China, the expansion of the store network contributed to growth, while in Europe, expanded licensing for fast-fashion retailers drove performance. In the Americas, toys and apparel contributed, while delays and suspensions in production and shipments due to U.S. tariffs restrained growth. The fiscal year ending March 2027 outlook incorporates investment to increase character exposure globally, higher personnel expenses and the continued impact of tariffs.

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