Mid‑Term Plan

Positioning of the TOHO Group Management Strategy and the Mid‑Term Plan

TOHO Mid‑Term Plan 2028 represents a pivotal phase of ongoing investment and transformation. Building on the growth narrative outlined in our Long‑Term Vision 2032 under the TOHO VISION 2032 Group Management Strategy, we are committed to becoming an entertainment company loved by fans worldwide.

Guiding Principles of TOHO Mid‑Term Plan 2028

At the heart of this success is a simple, unwavering truth—our people pour their passion into their creative vision, bring entertainment to life, and share it with the world. No matter how the external landscape evolves, this remains the cornerstone of TOHO’s value creation. However, lasting growth requires more than just delivering content to a global audience. To build deeper, more meaningful connections, we must go beyond distribution to truly understand what resonates with audiences worldwide. These connections can transform casual viewers into devoted fans.
People. Stories. The World. Stronger Connections with Audiences Everywhere.
With this vision of TOHO Mid‑Term Plan 2028 as our guide, the TOHO Group is on a mission to become an entertainment company loved by fans across the globe.

Key points

Key points
Human Resources	Scaling Excellence: Creating a company‑wide network of experts. Hire approx. 200 people^1, the source of our growth, over the next three years. Focus on investing in our people and enhancing engagement with them. 1 People at TOHO CO., LTD.
Content & IP	Deliver world‑class entertainment with a diverse lineup of approximately 200 titles, captivating audiences across the globe. Invest approx. ¥70 billion over the next three years to plan and produce content, such as movies, animation, theatrical plays, and digital games, and create related IP. GODZILLA IP will be developed and distributed with an investment of approx. ¥15 billion over the next three years to fully scale the IP business. Set aside approx. ¥120 billion over the next three years for growth investments such as M&A in the content and IP areas and opening of multiplexes. Aim to achieve an operating profit of 200%^2 or more in the IP and Anime business by doubling the number of employees at TOHO animation by 2032. 2 Operating profit in new segments compared to 22.2 billion yen for FY2/25.
Digital	Invest approx. ¥5 billion in the TOHO‑ONE project to develop the customer data platform of the TOHO Group. — Launch of a new membership service in spring 2026 to create a seamless and unified customer experience.
Overseas	Create synergies with companies that newly joined the TOHO Group while accelerating the increase of our overseas offices. Increase our overseas net operating revenue ratio from the current 10% to 30% by 2032.

Financial targets

The financial targets for operating profit, shareholder returns, and ROE are higher than those of the Mid‑Term Plan 2025. The ROE target set out in Long‑Term Vision 2032 has also been raised from around 8‑10% to a sustained level of 10% or higher.

中期経営計画2025、中期経営計画2028、長期ビジョン2032で目指す営業利益、株主還元、ROEの目標を表した図

Capital allocation

The policy is to use operating cash flow, while also considering and implementing financing through borrowings, bond issuance, and other means, including the potential sale of cross‑shareholdings and real estate holdings, to fund growth investments and shareholder returns.

中期経営計画2028におけるキャピタルアロケーションを示した図 — Operating cash flow = profit (excluding gain on sale of owned assets) + depreciation + amortization of goodwill

Cash inflows

Operating cash flow + gain on sale of owned assets: approx. ¥160‑¥170 billion
Use of interest‑bearing liabilities: approx. ¥40 billion

Cash outflows

Investments: approx. ¥160 billion

Growth investments: approx. ¥120 billion

Implement M&A, strategic investments, and other initiatives in the content and IP areas (¥100 billion)
Open new multiplexes, make capital expenditures for existing movie theaters, make digital technology related investments, etc. (¥20 billion)

Real estate‑related investments: approximately ¥40 billion