Toho

Basic Information

Stock Code
9602
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
August 1932
Listing Year
May 1949
Official Website
https://www.toho.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tohoku Shinsha, SPO, Bandai Namco HD, Shochiku, Toei, Konami G

Overview

Toho is a long-established Japanese film and theater production company founded in 1932, boasting the industry's largest film distribution network and stable revenue from its real estate business.

Current Situation

Toho achieved solid performance in the fiscal year ending February 2024, with consolidated sales of approximately 283.3 billion yen and operating profit of approximately 59.3 billion yen. As one of Japan's three major film companies, it engages diversely in special effects films, commercial theater, and video streaming. Even after scaling back its film production division, it maintains an overwhelming market share in distribution and exhibition, while strengthening its musical and theater businesses. Its real estate operations provide a stable revenue source, owning premium assets such as the Toho Hibiya Building. In recent years, it has intensified its animation business, expanded overseas bases, and established TOHO Global to focus on international development. Through capital and business alliances with Bandai Namco and the acquisition of GKIDS as a subsidiary, it is advancing IP utilization and content expansion. It has also launched the new TOHO NEXT label to address diversification, and its medium-term management plan aims to balance a 35% dividend payout ratio target with growth investments.

Trivia

Interesting Facts

  • Toho is one of Japan's big three film companies and the largest.
  • Known for special effects film production including Godzilla.
  • Generates revenue not only from film distribution but also real estate leasing.
  • Owns major theaters such as Imperial Theatre and Theater Crea.
  • Established Animation Business Division in 2013 to strengthen operations.
  • Integrated Toho Studios in 2020 to improve production efficiency.
  • Capital alliance with Bandai Namco HD to expand content.
  • Acquired GKIDS to strengthen anime distribution in North America.
  • Distributes films across diverse genres to broad customer segments.
  • The postwar Toho dispute was a major incident in Japanese film history.

Hidden Connections

  • Core company of Hankyu Hanshin Toho Group, collaborating across wide industries.
  • Stabilizes operations with prime real estate assets purchased for theater sites.
  • Toho's film production expertise is utilized in overseas operations like TOHO Global.
  • TOHO NEXT label gaining attention as new development for 2.5D stage footage.
  • Possesses strong talent management network through Toho Entertainment.
  • History of nurturing masters like Akira Kurosawa and Eiji Tsuburaya in Japanese film.
  • Real estate business accounts for about 40% of operating profit.
  • Strengthening appeal to younger generations through IP utilization in anime and games.

Future Outlook

Growth Drivers

  • Increasing demand for film and anime distribution domestically and internationally
  • 対応 to expansion of digital streaming platforms
  • New business development utilizing special effects technology
  • Strengthened partnerships in international co-productions
  • Diversification of theater operations and live events
  • Promotion of global expansion for popular IPs
  • Growth in games and smartphone app business
  • Effective utilization and revenue expansion of real estate assets
  • Advancement of sustainable management
  • Strengthened marketing to diverse customer bases
  • Advanced production technology and cost efficiency
  • Enhanced talent management and content collaboration

Strategic Goals

  • Maintain dividend payout ratio above 35% and expand shareholder returns
  • Further increase overseas sales ratio
  • Achieve over 50% sales ratio from anime and digital businesses
  • Reduce environmental impact and achieve sustainability
  • Transform into a total entertainment company
  • Maximize IP assets utilization domestically and internationally
  • Develop new markets and business areas
  • Full promotion of digitalization and DX
  • Foster diversity respect and comfortable workplaces
  • Deepen collaboration with local communities to enhance corporate value

Business Segments

Film Production Support

Overview
Provides comprehensive support services for technology, equipment, marketing, etc., in film production.
Competitiveness
Years of video production experience and equipment network
Customers
  • Theater distribution companies
  • TV stations
  • Production companies
  • Video production companies
  • Advertising agencies
  • Distribution companies
  • Exhibitors
  • Overseas partners
  • Special effects production companies
  • Sound equipment companies
  • Film research institutions
  • Cultural organizations
Products
  • Video production services
  • Studio and equipment rental
  • Special shooting
  • Production technology support
  • Video post-production
  • Sound production
  • Distribution management services
  • Overseas expansion support
  • Marketing support
  • Script development
  • Talent casting
  • Copyright management

Theater Exhibition Operations

Overview
Provides one-stop support from planning to operations for theater and musical performances.
Competitiveness
Collaboration with directly managed theaters like the Imperial Theatre
Customers
  • Theater owners
  • Theater production companies
  • Advertising agencies
  • Audience mobilization services
  • Ticket sales companies
  • Corporate sponsors
  • Event planning companies
  • Sound and lighting equipment companies
  • Production technology companies
  • Talent agencies
Products
  • Exhibition support services
  • Ticket management
  • Promotion and advertising production
  • Performance planning and operations
  • Production materials provision
  • Theater operation services
  • Talent management
  • Customer analysis
  • Revenue maximization consulting
  • Stage technology

Real Estate Leasing Management

Overview
Secures stable revenue through leasing and management of owned real estate.
Competitiveness
Diverse utilization of real estate in prime locations
Customers
  • Commercial facility operators
  • Office-using companies
  • Retailers
  • Leisure operators
  • Real estate investors
Products
  • Office building leasing
  • Commercial and store leasing
  • Real estate management
  • Asset management consulting
  • Facility maintenance management

Video Software Sales

Overview
Engages in media sales and rentals of films and video works.
Competitiveness
Handling of abundant popular content
Customers
  • Retail stores
  • Online shops
  • Rental companies
  • Educational institutions
  • Corporate promotions
Products
  • DVD/Blu-ray products
  • Digital distribution licenses
  • Video educational materials
  • Promotional videos

Animation Production Collaboration

Overview
Provides a variety of services related to animation planning, production, and distribution.
Competitiveness
Collaboration system with Toho and TOHO animation
Customers
  • TV stations
  • Production companies
  • Distribution companies
  • Advertisers
  • Overseas markets
Products
  • Animation planning and production contracts
  • Copyright management
  • Merchandise production
  • International licenses
  • Marketing support

Events and Live Streaming

Overview
Services supporting video recording and distribution for live and stage events.
Competitiveness
Abundant theater operation experience and shooting equipment
Customers
  • Talent agencies
  • Live houses
  • Music labels
  • Fan communities
  • Advertising agencies
Products
  • Stage footage production
  • Live streaming
  • Video editing services
  • Content distribution
  • Event planning and operations

Games and Digital Media

Overview
Expanding distribution and digital media business in the gaming sector.
Competitiveness
Powerful IP and media collaboration system
Customers
  • Game developers
  • Smartphone app developers
  • Video production companies
  • Advertising agencies
  • IP holders
Products
  • Game software distribution
  • Digital content development
  • Promotional videos
  • IP license management
  • Digital marketing

Talent Management

Overview
Handles management of affiliated talent and related operations.
Competitiveness
Strong talent network through Toho Entertainment
Customers
  • Talent agencies
  • TV stations
  • Film production companies
  • Advertising agencies
Products
  • Actor and talent management
  • Appearance negotiation agency
  • Event appearance support
  • Contract management

Education and Training Business

Overview
Provides education and training services for industry professionals.
Competitiveness
Practical training based on long years of industry experience
Customers
  • Film schools
  • Video technicians
  • Employee training institutions
  • Theater operation staff
Products
  • Video production training
  • Technical workshops
  • Stage operation education
  • Employee training programs

Advertising and Promotion

Overview
Supports promotion of video and music content.
Competitiveness
Integration of marketing and distribution networks
Customers
  • Corporate advertising agencies
  • Film production companies
  • Music labels
  • Event planning companies
Products
  • Film promotion
  • Advertising planning and production
  • Media planning
  • Event promotion

Video Streaming Services

Overview
Engages in planning, operations, and technology provision for digital video streaming.
Competitiveness
Abundant video content and technical capabilities
Customers
  • Video streaming platforms
  • TV stations
  • Movie theater chains
  • Advertisers
Products
  • Streaming distribution
  • Platform operations
  • Content management
  • User analysis

Licensing and Copyright Management

Overview
Operates licensing management business centered on Toho IPs.
Competitiveness
Japan's largest IP portfolio
Customers
  • Domestic and international distribution companies
  • Merchandising manufacturers
  • Advertising agencies
  • Various media
Products
  • IP management
  • Copyright negotiations
  • Merchandise planning collaboration
  • Overseas licenses

Competitive Advantage

Strengths

  • Japan's largest film distribution network
  • Powerful special effects technology and IP assets
  • Diversified business portfolio
  • Stable revenue base from real estate
  • Support from Hankyu Hanshin Toho Group
  • Solid financial position and profit margins
  • Comprehensive production technology and facilities
  • Top-tier talent management in the industry
  • Overseas market対応 through strengthened international expansion
  • Aggressive expansion in animation business
  • Directly managed theater operations
  • High IP utilization capabilities
  • Strong brand image
  • Long history in films and theater
  • Diverse customer base

Competitive Advantages

  • Largest sales scale among Japan's three major film companies
  • Strong brand power in special effects films and musicals
  • Audience draw and stable revenue from Toho film distribution
  • Revenue diversification and stabilization through real estate
  • Ownership of numerous famous IPs and historic works
  • Capital and managerial support from Hankyu Hanshin Toho Group
  • Expanding distribution networks and partnerships domestically and internationally
  • Advanced video technology and post-production
  • Diversified licensing and merchandising strategies
  • Active investments in animation and digital distribution
  • Integrated system for theater operations and event exhibitions
  • Robust talent management system
  • Track record in international co-productions and overseas market development
  • Toho's cultural and social influence
  • Stable dividend policy and medium-term management plan

Threats

  • Declining movie theater attendance and intensifying competition
  • Revenue decline due to entry of streaming platforms
  • International complexities in copyright management
  • Rise of emerging content companies
  • Real estate market fluctuation risks
  • Exhibition restrictions from novel infectious diseases
  • Impact of international situations on overseas expansion
  • Talent outflow and technology succession challenges
  • Limitations of conventional film production styles
  • Potential business constraints from strengthened regulations
  • Delays in responding to digital technology innovations
  • Demand fragmentation from diversifying consumer preferences

Innovations

2023: Strengthening overseas business through TOHO Global establishment

Overview
Advances international expansion by acquiring North American subsidiary and establishing overseas business headquarters.
Impact
Expansion of overseas revenue and enhanced brand recognition

2024: Launch of new TOHO NEXT label

Overview
Starts diverse film and anime screening business for small- and medium-sized theaters.
Impact
Diversification of screening lineup and revenue growth

2024: Release of smartphone game 'Godzilla Battle Line' and others

Overview
Expands into mobile gaming using strong IPs to target younger demographics.
Impact
Building a new pillar for digital business revenue

2022: Capital and business alliance with Bandai Namco Holdings

Overview
Aims to create synergies through strengthened collaboration in games and content.
Impact
Acceleration of cross-media expansion and enhanced market competitiveness

2020: Strengthening production system through Toho Studio integration

Overview
One-stop integration of studio management and production for improved efficiency.
Impact
Cost reductions in production and quality improvements

Sustainability

  • Cultural contribution activities to local communities
  • Management reforms to reduce environmental impact
  • Diverse talent recruitment and workplace environment improvements
  • Promotion of digital technology use in video production
  • Energy-saving and recycling initiatives at movie theaters
  • CO2 emission reductions through promotion of public transport
  • Programs promoting social inclusion
  • Sustainable asset management and business operations
  • Thorough fair trade practices
  • Educational support for next-generation development
  • Participation in disaster support and community safety activities
  • Promotion and awareness activities for arts and culture