October 29, 2009

TOEI ANIMATION

Presentation for The Second Quarter Period of FY March 2010

(April 2009 to September 2009)

TOEI ANIMATION Co., Ltd.

©Miyoko Matsutani, Thriller Restaurant TEAM, TV Asahi, Dentsu, 2009 Fresh Pretty Cure the Movie Production

Committee, Eiichiro Oda, Shueisha, Fuji Television, 2009 ONE PIECE Production Committee, Toei Animation

Thriller Restaurant

Every Tuesday@19:30 on TV Asahi network from October 13th, 2009

Fresh Pretty Cure the Movie! Secrets of the Toy Kingdom!?

To be premiered on October 31, 2009

ONE PIECE film STRONG WORLD

To be premiered on December 12th, 2009

October 29, 2009

TOEI ANIMATION

0

5,000

10,000

15,000

20,000

25,000

0

2,000

4,000

6,000

8,000

10,000

FY2010.3 Second Quarter Results -consolidated-

FY '06/3 FY '07/3 FY '08/3 FY '09/3

Net Sales 21,561 20,153 21,148 21,718

Operating Income 3,858 3,307 2,726 3,123

Ordinary Income 4,157 3,773 2,938 3,412

Net Income 2,428 3,672 1,685 492

0

2,000

4,000

6,000

8,000

10,000

12,000

0

1,000

2,000

3,000

4,000

5,000

(Million Yen)

Net Sales

Achieved the 2Q plan

Full Year 2nd Quarter

1-2

Net Sales Income Income

FY '09/3

2Q

FY '10/3

2Q Plan

FY '10/3

2Q Result

Net Sales 10,613 8,100 9,063

Operating Income 1,937 800 906

Ordinary Income 2,123 900 1,040

Net Income 418 600 625

October 29, 2009

TOEI ANIMATION

Segment Breakdown –Consolidated-

FY '09/3

2Q

FY '10/3

2Q

10,613 9,063 -14.6%

5,170 4,698 -9.1%

Movies 54 452 723.5%

TVs 1,336 1,169 -12.5%

DVDs 1,938 941 -51.4%

Overseas Film 1,308 1,316 0.6%

Others 532 818 53.7%

4,029 2,600 -35.5%

Japan 2,875 2,018 -29.8%

Overseas 1,154 581 -49.6%

1,423 1,784 25.4%

Sales of Goods 1,191 1,537 29.1%

Events 232 247 6.4%

8,160 7,185 -11.9%

2,463 1,898 -23.0%

Japan

Overseas

Net Sales

Film

Licensing

Others

(Million Yen)

Launch of a full list of major DVD works completed

Intensive videogame releases in the second half.

Led management of the movie Pretty Cure All Stars DX, released in March. It enjoyed the best box office of the series

About the same number of episode broadcast, compared to the same period last year

Robust sales of Dragon Ball in the EU

Strong tie-up promotion of Fresh Pretty Cure! and Dragon Ball Kai

2-1

＊Forecasts for segments such as made-for-theater animations, TV animations, others, goods sales, and events are not disclosed.

Healthy distribution for mobile phone

Licensing of Fresh Pretty Cure! outstrips the previous series. Decline in sales related to Pinball Machine.

October 29, 2009

TOEI ANIMATION

Consolidated Projections for FY Ending 2010.3

0

5,000

10,000

15,000

20,000

25,000

0

1,000

2,000

3,000

4,000

5,000

FY2008.3 FY2008.3 FY2009.3 FY2009.3 FY2010.3

Plan Result Plan Result Plan

Net Sales 18,900 21,148 19,500 21,718 17,700

Operating Income 2,400 2,726 2,300 3,123 1,400

Ordinary Income 2,700 2,938 2,600 3,412 1,600

Net Income 1,600 1,685 1,500 492 1,000Co

nso

lid

ate

d

Good results

due to

licensing

Good results

due to DVD box

set sales &

licensing

(Million Yen)

2-2

Net Sales Income

October 29, 2009

TOEI ANIMATION

2006 241.5 billion yen Sharply up from the peak 106.9 billion yen in 1990

2007 230.2 billion yen 95.3% (11.3 billion yen decrease) on a year-on-year basis

2008 212.9 billion yen 92.5%（17.3 billion yen decrease) on a year-on-year basis, and 88.2% from 2006.

Fewer hit animation films, including foreign films

Declining number of TV animation programs

Reduced TV program production budgets

Sales of animation videos down substantially over the previous year

（Reference for films, TVs, videograms, and network distribution: Media Development Research Institute Inc.

65%

60%

60%

52%

15%

22%

21%

31%

20%

18%

19%

17%

10/03 2Q

09/03

08/03

07/03

Although director Hayao Miyazaki’s first film in four years, Ponyo on a Cliff by the Sea,

recorded 15 billion yen at the box office in Japan in 2008,

Changes in the Sales Structure of Toei Animation

TV program production, merchandising rights,

movie production and income

Domestic video production, sales, and distribution

Overseas business

The Changing Operating Environment Surrounding the Animation Business ①

3-1

Japanese Animation Market

October 29, 2009

TOEI ANIMATION

Sales of DVDsAmount

(million yen)Year-on-Year Of DVD sales：

Amount

(million yen)Year-on-Year

DVD total 118,942 85.6% Japanese animation for all audiences 31,138 90.5%

DVDs for sale 73,909 82.2% Japanese animation for children 2,488 68.2%

DVDs for rental 449 92.4%

DVDs for business 104 22.6%

Sales of all videogramsAmount

(million yen)Year-on-Year Of Blu-ray Disc sales:

Amount

(million yen)Year-on-Year

total sales 127,731 90.3% Japanese animation for all audiences 4,615 984%

Blu-ray discs for sale 7,752 391.5% Japanese animation for children 5 -

Blu-ray discs for rental 685 337.4%

Blu-ray discs for business 6 －

Spring 2009

Income from other business for TV stations

Increase in number of prime-time programs

Downturn in sales of DVDs

Decrease in number of late-night programs

reference: Japan Video Software Association

（number）

Toei Animation: 6 Toei Animation: 7

3-2

Changes in number of terrestrial TV animation programs.

Sales of videograms in the first half of 2009 in Japan

Fall 2009

6 10

10 12 7

8

12

10 7

17

The Changing Operating Environment Surrounding the Animation Business ②

Prime time slot Evening time slot Morning time slot Sunday morning time slot Late-night time slot

Features of 30min. animation programming for the fall of 2009

October 29, 2009

TOEI ANIMATION

“During an economic downturn

is the time to innovate”

We will expand efficient business models

that already exist, and create new works

and new models.

4-1

October 29, 2009

TOEI ANIMATION

The Future of the Animation Business

It takes changing each combination to

build a new business model.

The model for the Animation Business should be divided into two for each theme:

The scope of the animation business can be constantly extended

by combining these factors.

Prime-time slot

Sunday morning

slot

When will it air?

Children

Animation fans

Who is the target? How is it made?

2D

3D scenography

Which film version?

Expand a TV series

Original

Which target?

Boys

Girls

How to expand overseas?

Export

Co-production

How will it air overseas?

TV Broadcast

Online Simulcast

Which project?

New project

Remake

What source of character?

Comic book

Original

What kind of package?

DVD

Blu-ray disc

4-2

OR OR

OR

OR

OR

OR OR

OR

OR

OR

October 29, 2009

TOEI ANIMATION

0

5

10

15

Every Tuesday at 19:30 on TV Asahi network

from October 13, 2009

Asataro, the onion samurai

・Sunday morning at 6:30

・Local stations

Limit of expansion of

recognition and

commoditization

Works for terrestrial prime-time slots over three years

The original book is a ghost story series for elementary and junior high school students, first published in

1996 by Doshinsha Publishing Co., Ltd. As of 2007, 50 volumes had been published.

It is a regular favorite in the library and classroom library, with more than 7 million copies already in print.

Thriller Restaurant

・Prime time slot

・national television networks

5-1 ©Miyoko Matsutani, Thriller Restaurant TEAM, TV Asahi, Toei Animation

household 6.2 6.5 7.9

M/F

ages4-12

17.5

8th rank

19.2

6th rank

New Initiatives ①

(%)

Thriller Restaurant

October 29, 2009

TOEI ANIMATION

Original: In The Pool,

Kuchu Buranko, and

Chocho Senkyo,

written by Hideo Okuda (Bungeishunju Ltd.)

Every Thursday on Fuji Televition’s

noitaminA bloc, among others, from

October 5, 2009

Jan.2006 Mar.2006 Oct.2009 Jul.2007 Sep.2007 Jan.2008 Mar.2008

Ayakashi -Japanese classic horror

Mononke Hakaba Kitaro Kuchu Buranko

noitaminA block: Our entry on Fuji Television’s “noitaminA” bloc achieved high ratings, despite airing late in the evening, thanks to its lush animation.

©Kuchu Buranko Production Committee, Mononoke Production Committee

The 131st Naoki Prize

winners

Kenji Nakamura is the

director of Mononoke,

which built an

astonishingly wide

following with its lush

and innovative images.

Kuchu Buranko is a

hybrid animation,

blending 2D, CG, and

live action

Works for late-night slots over two years A new animation noitaminA bloc on Fuji Television

5-2

New Initiatives ②

Kuchu Buranko

October 29, 2009

TOEI ANIMATION

premiered on October 3, 2009

Digital 3D screen systems are rapidly proliferating

As of July 2009

Japan 200 theaters

U.S. 2,500 theaters

Forecast for 2018※

Japan 600 theaters

World 16,700 theaters

※[The latest move and future prospective of Digital Cinema and 3D Cinema Business 2009]

by Seed Planning, Inc.

Raising expectations for 3D content:

Various manufacturers displayed 3D-

compatible TV and Blu-ray disc players at

the Combined Exhibition of Advanced

Technologies: CEATEC JAPAN

Kikansha Yaemon, the first 3D film with full CG

animation for theaters in Japan.

We are creating new entertainment based on

appealing 3D scenograpical image

6-1

New Initiatives ③

©2009 TOBIDASU! 3D TOEI ANIME MATSURI Production Committee

Japan’s first 3D animation for theaters

TOBIDASU! 3D TOEI ANIME MATSURI

October 29, 2009

TOEI ANIMATION

Enhancing Planning and Production Capabilities

Our CG technology has developed an

excellent reputation since Toei’s movie The

Men of the Yamato in 2005, and we are

increasingly involved in other productions

under contract.

Hottarake no shima –Haruka to maho no kagami

Kamen Rider Decade

and the others

At the request of NHK, we

dispatched senior CG staff to

make the special drama Saka

no Ue no Kumo, (Clouds Over

the Hill), which will air in

November on NHK.

Thirty-one years of animations for

NHK since Captain Future in 1978

6-2

New Initiatives ④

©Toei Animation, NHK Educational

Original short scientific animation: Marie & Galli

October 29, 2009

TOEI ANIMATION

New Initiatives ⑤

Evolving Kids Animation

Pretty Cure All Stars DX

released on March 2009

achieved record box-

office for the series: 1

billion yen!

For the 7th series To premiere on October 31, 2009 7-1

©ABC, 2009 Pretty Cure All Stars the Movie Production Committee, 2009 Fresh Pretty Cure! the Movie Production Committee, Toei Animation

Celebrity and character that children want to make friends with

overall first ranking （based on BANDAI’s survey of children Vol.169）

The sixth entry in the

Pretty Cure series

Enjoyed good ratings, and

merchandise

Sales outstripped the

previous installments Fresh Pretty Cure!

Fresh Pretty Cure the Movie! Secrets of the Toy Kingdom!?

October 29, 2009

TOEI ANIMATION

New Initiatives ⑥

10 Year Anniversary of ONE PIECE series on air

TV animation ONE PIECE enters its 10th on air,

making it our longest-running animation after

the Dragon Ball series

Episode 421 aired on October 11, 2009,

achieving ratings of 12%, a record since

moving its broadcast to every Sunday morning!

10th movie

ONE PIECE FILM STRONG WORLD

to premiere on December 12, 2009

Executive producer/author: Eiichiro Oda

Theme song: fanfare by Mr. Children

A free door gift : Comics Vol.0 that depicts the

world of One Piece 20 years ago

Comics copied 127million

in total

7-2 ©Eiichiro Oda, Shueisha, Fuji Television, 2009 One Piece Production Committee, Toei Animation

October 29, 2009

TOEI ANIMATION

New Initiatives ⑦

Reinvigorating a red-hot series through re-mastering in HD

Re-mastered Dragon Ball Z in HD: Faithfully and quickly

adapted its story framework to high-definition terrestrial

television, with broadcasts commencing from April 2009

Blu-ray disc

Promotion Event

Video games

8-1 ©Bird Studio, Shueisha, Fuji Television, 2009 NBGI, Eiichiro Oda, Toei Animation

Card games

Dragon Ball Kai

October 29, 2009

TOEI ANIMATION

New Initiatives ⑧

A limited-time shop selling tons of adorable

character goods, including original characters

in collaboration with PansonWorks “nintea.”

Held at Kichijoji Parco, Tokyu Hands Ginza, Naha OPA,

ecute Shinagawa, Granduo Kamata, Kyoto LOFT, Kobe

LOFT, and more so far

⇒ Now being held at Canal City OPA in Fukuoka (until

February 2010)

Expanding the Original Character Shop

nintea ⇒ Google Chrome

The original character “nintea” is used

for the artist’s theme of Google’s

browser, Google Chrome.

8-2 ©Yudetamago, Shueisha, Mizuki Production, Fuji Television, Fujio Akatsuka, Eiichiro Oda, PansonWorks, Toei Animation

October 29, 2009

TOEI ANIMATION

New Initiatives ⑨

Blu-ray Disc

Provide both new works and

libraries in a planned and

proactive way.

GeGeGe no Kitaro

the Movie –Japan on Fire!-

released in June 2009

One Piece

the 1st to 9th Movie

released November 2009

to January 2010

Dragon Ball Kai

Blu-ray Disc BOX1

released in October 2009

（Reference: Japan Video Software Association)

9-1 ©Leiji Matsumoto, Toei, Mizuki Production, Fuji Television, 2008 GeGeGe no Kitaro Production Committee, Bird Studio, Shueisha, Eiichiro Oda,Toei Animation

Blu-ray disc as a percentage of sales of the

package software market in the first half of 2009

was 6.6% (up 386.8% year-on-year basis),

with animation for all audiences comprising about

55% of discs.

GALAXY EXPRESS 999

THE MOVIE Blu-ray Disc Box &

single Blu-ray Discs

released on September 9,2009

October 29, 2009

TOEI ANIMATION

New Initiatives ⑩

Launched a U.S. and Canadian online simulcast

of the TV animation One Piece with English

subtitles starting on August 30, 2009

Just one hour after airing in Japan, it marks the

return of One Piece online simulcasts via the

official One Piece website at no charge, with

banner ads. One week later it is delivered via

the dominant site Hulu.com.

Seeking the development of package

media and merchandises

Online simulcast for North America

Joining HALO LEGENDS

©Eiichiro Oda, Shueisha, Fuji Television, 2009 Microsoft Corporation, Toei Animation

We joined Microsoft’s new OVA

animation project “HALO LEGENDS”

HALO is a major hit game, selling a total

of 27 million copies worldwide.

Other leading Japan production firms are

joining: Production I.G., Studio 4ºC,

bones, and CASIO entertainment. 9-2

October 29, 2009

TOEI ANIMATION

New Initiatives ⑪

This is a safe and enjoyable

online service launched on

October 2009.

Your avatar takes part in various

events on Pretty Cure’s stage.

Web Comic

This is a cooperative project between

Toei Animation and Mag Garden

Corporation that is producing a

number of hit comics.

It started as a four-frame web comic

at Yahoo! comic on September 2009.

Toei Robot Girls

A project in which we refine

animation robot characters in

an innovative way and reveal

hidden masterpieces to the

public. It began as a four-

frame cartoon.

cartoon:Daisuke Shinkubo ©Nogyo Musume! Project, ABC, Toei Animation

Pretty Cure Online

Web Content

10-1 Nogyo Musume!

October 29, 2009

TOEI ANIMATION

For Future Growth

Toei Animation’s advantages: “sophisticated production know-how” and “a wealth

of libraries” can be effective tools for improving competitive power and superiority.

Our investment strategy prioritizes new pilot works, original theatrical animations,

international collaboration, non-TV projects, and online delivery.

Sowing the seeds for the businesses of the future

Instead of avoiding the risk at the era of reform,

we invest aggressively into new project and aim for a next hit. 10-2

October 29, 2009

TOEI ANIMATION

One Piece Every Sunday @9:30 on

Fuji Television et al.

My Three Daughters Every Tuesday @17:30 on TV Tokyo network

Dragon Ball Kai Every Sunday @9:00

on Fuji Television network

Marie & Gali within Suiensa

Every Tuesday @19:25 on NHK Educational Channel

©Miyoko Matsutani, Thriller Restaurant TEAM, TV Asahi, Dentsu, ABC, Bird Studio, Shueisha, Eiichiro Oda, Purittsu Matsumoto, Shufunotomo, 3 Daughters Project, NHK Educational, Kuchu Buranko Production Committee, Toei Animation

Fresh Pretty Cure! Every Sunday @8:30

on ABC & TV Asahi network

TV Lineup

Thriller Restaurant Every Sunday @6:30 on TV Asahi network

11-1

Kuchu Buranko Every Thursday @24:45

on Fuji Television “noitaminA” et al.