January 29, 2010

TOEI ANIMATION

©Eiichiro Oda, Shueisha, Fuji Television, 2009 ONE PIECE Production Committee, ABC, 2010 Pretty Cure All Starts 2 the Movie Production Committee, Toei Animation

TOEI ANIMATION Co., Ltd.

Presentation for The Third Quarter Period of FY 2010.3 (April 2009 to December 2009)

ONE PIECE FILM STRONG WORLD

Premiered on December 12th, 2009

Heartcatch

Pretty Cure!(Heartcatch

Precure!)

Every Sunday@8:30 on ABC&TV Asahi Network, from Feb. 7th, 2010

Pretty Cure All Stars DX 2 the Movie!Rays of hope☆Protect Rainbow Jewels!

To be premiered on March 30, 2010

January 29, 2010

TOEI ANIMATION

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY '09/033Q

FY '10/033Q Resu lt

FY '10/03Plan

Net Sales 16,892 14,840 17,700 Operating Income 2,823 1,455 1,400 Ordinary Income 3,029 1,642 1,600 Net Income 174 965 1,000

3rd Quarter

1-2

（Million Yen）

FY2010.3Plan

Decrease in Operating & Ordinary Income

Increase in SG & A Expenses (particularly Ad expense)

Net Sales Income

Going strongtoward the

achievement of FY Plan

FY2010.3 Third Quarter Results -consolidated-

January 29, 2010

TOEI ANIMATION

（Million Yen)FY ’09/03Q3

FY ’10/03Q3

Film7,316 49.2%Licensing

4,16928.1%

3,37922.7%Film

8,47250.1%

Licensing5,64533.4%

2,788 16.5%

＊Numbers for each segment include intra-company sales

Others Others

Business Segments -consolidated-

0

2,000

4,000

6,000

8,000

10,000

0

1,000

2,000

3,000

4,000

5,000

Net Sales 8,472 7,316 5,645 4,169 2,788 3,379

Operating Income 1,229 445 2,309 1,757 172 173

FY'09/03

3Q

FY'10/03

3Q

FY'09/03

3Q

FY'10/03

3Q

FY'09/03

3Q

FY'10/03

3Q

2-1

Net Sales Income

Film Licensing Others

January 29, 2010

TOEI ANIMATION

FY'09/03

３Q

FY'10/03

３Q16,892 14,840 -12.1%8,472 7,316 -13.6%

Movies 555 1,415 155.0%TVs 1,827 1,810 -1.0%DVDs 3,552 1,370 -61.4%Overseas Film 1,758 1,556 -11.5%Others 778 1,163 49.5%

5,645 4,169 -26.2%Japan 4,062 3,298 -18.8%Overseas 1,583 871 -45.0%

2,788 3,379 21.2%Sales of Goods 2,491 3,067 23.1%Events 296 312 5.3%

13,561 12,437 -8.3%3,345 2,428 -27.4%

Japan

Overseas

Net Sales

Film

Licensing

Others

（Million Yen）

Decline in licensing sales of videogames

-Better performance in licensing of Fresh Pretty Cure! and One Piece.-Decline in sales related to Pinball Machine.

Mar. ’09 Pretty Cure All Stars DX the MovieOct. ’09 Fresh Pretty Cure the Movie!Dec. ’09 ONE PIECE FILM STRONG WORLD

became the big hit.

No. of broadcast eps. increased

Dragon Ball : Strong sales in the US & EUOne Piece: Robust in EU & Asia

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

2-2

Strong sales of digital distribution via mobile

Launch of a full list of major DVD works completed

Segment Breakdown -consolidated-

＊Numbers for each segment include intra-company sales

January 29, 2010

TOEI ANIMATION

Animation Movies earned over 1 Billion yen in 2009. (Source:Motion Picture Producers Association of Japan)

3-1

Japanese Animation Market

1 Pokémon: Arceus and the Jewel of Life 4.67

2 Evangelion 2.0 You Can (Not) Advance 4.02 WALL・E 4.04 Detective Conan: The Raven Chaser 3.55 Doraemon: Shin Nobita no Uchu Kaitakuki 2.456 Summer Wars 1.656 Bolt 1.658 Disney’s Christmas Carol 1.69 MAJOR: Yujo-no Winning Shot 1.0510 NARUTO Shippuden-Hi no Ishi wo Tsugumono 1.0210 Madagascar 2 1.0212 Pretty Cure All Stars DX 1.0113 Crayon Shinchan: Otakebe Kasukabe Yasei Okoku 1.0

Robust

Japanese Animation Film over 1 Billion Yen: 2008: 6 → 2009: 9

Year-crossing box office also mark a good start (included in Box office record for 2010）

ONE PIECE FILM STRONG WORLD & Disney’s UP earn over 9 Billion yen!

2006 241.5 billion yen Sharply up from the peak 106.9 billion yen in 19902007 230.2 billion yen 95.3% (11.3 billion yen decrease) on a year-on-year basis2008 212.9 billion yen 92.5%（17.3 billion yen decrease) on a year-on-year basis, and 88.2% from 2006.

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

2008 Animation Market: Although Ponyo on a Cliff by the Sea recorded 15 Bil yen BO, it showed; ①less big Box Office of animation movies; ②No. of TV animation broadcast continues to decrease; ③budgetary discipline of production cost by TV network; ④continuous decline of DVD sales.

(2009 Box Office: Billion yen)

The Changing Operating Environment Surrounding the Animation Business ①

Overseas Animation Film over 1 Billion Yen: 2008: 1 → 2009: 4

January 29, 2010

TOEI ANIMATION

（number）

3-2

6 10

10 127

8

12

10 7

17

Changes in number of terrestrial TV animation programs.

Spring 2009

Toei Animation: 6 Toei Animation: 7

Fall 2009

Prime time slotEvening time slotMorning time slotSunday morning time slotLate-night time slot

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

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

The Changing Operating Environment Surrounding the Animation Business ②

Sales of DVDs Amount(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 videograms Amount(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 －

reference: Japan Video Software Association

Sales of videogramsin the first half of 2009 in Japan

January 29, 2010

TOEI ANIMATION

4-1

“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.

January 29, 2010

TOEI ANIMATION

4-2

The Future of the Animation Business

It takes changing each combination to build a new business model.

The scope of the animation business can be constantly extended by combining these factors.

Prime-timeslot

Sunday morningslot

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

OROROR

OR

OR

OR OR

OR

OR

OR

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

January 29, 2010

TOEI ANIMATION

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0Household

Kids 4-6

Kids 10-12

Kids 7-9

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

Thriller Restaurant・Prime Time

・Nationwide broadcast5-1

It obtains high rating among Kids 4-12 audience

(%)

TV RatingsEpisode # #1 #2 #2 #4 #5 #6 #7 #8

Househld

Rating 6.2 6.5 7.9 6.6 7.2 7.9 6.7 6.6

Rank 12 11 6 10 9 9 11 8

Kids 4-6Rating 20.8 19.4 17.7 21.2 21.8 19.2 16.0 15.7

Rank 9 11 5 10 5 12 11 12

Kids 7-9Rating 16.9 20.0 34.4 31.4 29.3 35.9 33.0 25.8

Rank 12 11 3 5 3 1 3 3

Kids 10-12Rating 14.2 18.2 25.3 27.6 26.6 27.9 21.4 25.8

Rank 8 6 2 2 3 2 4 1

Works for terrestrial prime-time slots over three years

New Initiatives ①

©Miyoko Matsutani, Thriller Restaurant TEAM, TV Asahi, Dentsu,Toei Animation

January 29, 2010

TOEI ANIMATION

2006/1 2006/3 2009/102007/7 2007/9 2008/1 2008/3

Kuchu Branko

5-2

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

New Initiatives ②

Every Thursday on Fuji Televition’s noitaminA bloc, among others,

from October 5, 2009

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 actionThe 131st Naoki Prize

winnersThe series sold

2.23 million copies

Original: In The Pool, Kuchu Buranko, andChocho Senkyo,

written by Hideo Okuda (Bungeishunju Ltd.)noitaminA block:Our entry on Fuji Television’s “noitaminA” bloc achieved high ratings, despite airing late in the evening, thanks to its lush animation.

Ayakashi-Japanese classic horror Mononke Hakaba Kitaro

©Kuchu Buranko Production Committee, Mononoke Production Committee

Kūchū Branko (Flying Trapezes)

January 29, 2010

TOEI ANIMATION

6-1

New Initiatives ③

Japan’s first 3DCG animation for theaters

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

As of July 2009Japan 200 theatersU.S. 2,500 theaters

Forecast for 2018※

Japan 600 theatersWorld 16,700 theaters

Raising expectations for 3D content:Various manufacturers showcased 3D-

compatible TV and Blu-ray disc players at the Combined Exhibition of Advanced

Technologies: CEATEC JAPAN

In 2010, many electronics companies showcase 3D TV

※Source: [The latest move and future prospective of Digital Cinema and 3D Cinema Business 2009] by Seed Planning, Inc.

©2009 TOBIDASU! 3D TOEI ANIME MATSURI Production Committee

TOBIDASU! 3D TOEI ANIME FEST.

premiered on October 3, 2009

Digital 3D screen systems are rapidly proliferating

January 29, 2010

TOEI ANIMATION

6-2

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 kagamiKamen Rider Decadeand 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

New Initiatives ④

©Toei Animation, NHK Educational

Original short scientific animation: Marie & Galli

January 29, 2010

TOEI ANIMATION

Pretty Cure All Stars DX released on March 2009achieved record box- office for the series: 1 billion yen!

For the 7th series

7-1©ABC, 2009 Pretty Cure All Stars the Movie Production Committee, 2009 Fresh Pretty Cure the Movie Production Committee, 2010 Pretty Cure All Stars 2 the Movie Production Committee, Toei Animation

2009

Annual BestsellingToy Ranking

-Girls Toy Segment-

Dominated No.1

thru No.4!（source；Toy Journal）

Premiered on Oct. 20, 2009, Fresh Pretty Cure the Movie! keeps long-running release

To be premiered on Mar. 30, 2010Pretty Cure All Stars DX 2

Evolving Kids Animation

New Initiatives ⑤

Advance tickets are selling well

January 29, 2010

TOEI ANIMATION

10th MovieONE PIECE FILM STRONG WORLD

Executive producer/author: Eiichiro OdaTheme song: fanfare by Mr. ChildrenA free door gift : Comics Vol.0 that depicts the world of One Piece 20 years ago

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

Toei Animation’s 1st best box office of all time record! and still counting!

Advance tickets sold: +290K!Box office: +400 Mil. yen!

Tapped 4 Bil. yen BO in 29 days from the release

Set the records of the best & fastest

in Toei’s history

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 428 aired on November 29, 2009, achieving ratings of 12.2%, a record since

moving its broadcast to every Sunday morning!

January 29, 2010

TOEI ANIMATION

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

Reinvigorating a red-hot seriesthrough 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

New Initiatives ⑦

Blu-ray disc

PromotionEvent

Video games

Card games

Dragon Ball Kai

January 29, 2010

TOEI ANIMATION

8-2

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.

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

January 29, 2010

TOEI ANIMATION

9-1

New Initiatives ⑨

Blu-ray Disc

Provide both new works and libraries in a planned and proactive way.

GeGeGe no Kitarothe Movie -Japan on Fire!-

released in June 2009

One Piecethe 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)

©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.

Good sales

GALAXY EXPRESS 999 THE MOVIE Blu-ray Disc Box

& single Blu-ray Discsreleased on September 9,2009

January 29, 2010

TOEI ANIMATION

9-2

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.

January 29, 2010

TOEI ANIMATION

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.

©Nogyo Musume! Project, LifeStyle TSUNODA, Morphing Inc., MAG Garden, Ketsuinu Production Committee, ABC, Toei Animation 10-1

New Initiatives ⑪

Web ContentWeb Comic Toei Robot Girls Pretty Cure Online

This is a safe and enjoyable online service launched on

October 2009.Your avatar takes part in various events on Pretty Cure’s stage.

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

January 29, 2010

TOEI ANIMATION

10-2

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.

January 29, 2010

TOEI ANIMATION

©Miyoko Matsutani, Thriller Restaurant TEAM, TV Asahi, Dentsu, ABC, Bird Stduio, Shueisha, Fuji Television, Eiichiro Oda, Purittu Matsumoto, Shufunotomo, 3 Daughters Project, NHK Educational, Masami Kurumada, Toei Animation

Heartcatch

Pretty Cure(Precure)!Every Sunday @8:30

on ABC & TV Asahi network

11-1

Starts on 2/7/’10

RING NI KAKERO1-Shadow-

Animax PPV Premier

on SkyPerfect!

SkaChan

Starts on 4/2/’10

TV Lineup

One PieceEvery Sunday @9:30 on

Fuji Television et al.

My Three DaughtersEvery Tuesday @17:30on TV Tokyo network

Dragon Ball KaiEvery Sunday @9:00

on Fuji Television network

Marie & Gali within Suiensa

Every Tuesday @19:25on NHK Educational Channel

Thriller RestaurantEvery Sunday @6:30on TV Asahi network