Explanation of Results of Operations （Third Quarter of FY3/2026）

Summary

（JPY: Million）

Reportable Segment

Segment Sales Ratio

i. Japan: Net sales rose 34.1% year-on-year to 85.2 billion yen and operating profit rose 48.8% to 40.6 billion yen.

The product sales and licensing businesses continued to perform well, supported by the sustained popularity of Hello Kitty and the ongoing success of a strategy featuring a wide range of Sanrio characters centered on Kuromi and My Melody, both of which celebrated anniversaries in 2025.
In the product sales business, the Tokyo Character Street store opened in November 2025 and the Harajuku store in December. Store-exclusive offerings proved popular, including the patch decoration corner at the Harajuku store where customers can create original goods, contributing to both stores significantly exceeding their sales targets.
In the licensing business, a wide range of Sanrio characters—particularly those celebrating anniversaries—were adopted, driving significant sales growth across diverse categories including beverages, food service, consumer goods, cosmetics, and apparel. Related merchandise gained popularity, reflecting the growing demand for stickers.
Operating profit rose significantly due to a big increase in sales.

ii. Europe: Net sales rose 128.3% year-on-year to 7.9 billion yen and operating profit rose 163.4% year-on-year to 2.3 billion yen.

In the licensing business, sales rose significantly, driven by the continued strategy of featuring a wide range of Sanrio characters and successful initiatives with global brands. In particular, growth was led by the apparel category,which benefited from partnerships with fast fashion brands, and the toy category, which also featured a wide range of Sanrio characters.
Operating profit increased significantly due to sales growth.

iii. North America: Net sales rose 3.2% year-on-year to 18.8 billion yen and operating profit rose 13.1% yearon-year to 5.8 billion yen.

The licensing business saw sales growth in the toy, apparel, and digital categories. In the toy category, plush toys,character figures, and other products performed well. The apparel category continued to expand its product lineup for the mass market (such as large retail chains) through initiatives with existing licensees. In the digital category,the launch of game content featuring a wide range of Sanrio characters across additional platforms contributed to increased sales and higher brand awareness.
Additionally, as part of its initiatives to enhance brand value and expand customer touchpoints, the Group held several sports and culture events. These included events in partnership with professional sports leagues such as MLB (baseball), NHL (ice hockey), NBA (basketball), MLS and NWSL (football), and F1 Academy.
Operating profit increased despite factors including marketing investments and higher e-commerce shipping costs.

iv. Latin America: Net sales rose 98.5% year-on-year to 2.2 billion yen and operating profit rose 59.0% year-onyear to 0.6 billion yen.

In Latin America as a whole, the licensing business performed well in the categories of apparel, health & beauty,stationery, accessories and bags. Moreover, characters other than Hello Kitty grew in popularity, including My Melody, which is marking its 50th, Kuromi, which is celebrating its 20th anniversary, and Cinnamoroll.
In Mexico, the bag category performed well, driven by strong sales of school bags, as did the stationery category, supported by the popularity of school supplies targeting teenagers. In Brazil, higher sales were driven by the health & beauty category, due to the success of a lip balm created in collaboration with a major pharmaceutical company.
The apparel category also saw higher sales of merchandise featuring Kuromi and Hello Kitty amid their growing popularity. Additionally, throughout Latin America, the rollout of products across multiple categories by major global brands drove sales. Furthermore, collaboration with a global fast-food chain contributed significantly to increasing Hello Kitty brand awareness.
Operating profit increased due to sales growth.

v. Asia: Net sales rose 57.6% year-on-year to28.8 billion yen and operating profit rose 72.1% to 14.9 billion yen.

In China, licensing business sales in the toys & hobby, apparel and accessories and corporate special sales categories were strong. The strategic deployment of a wide range of Sanrio characters proved successful, with not only Hello Kitty but also Kuromi and My Sweet Piano gaining in popularity. In the product sales business, sales increased significantly through new store openings and the rollout of region-exclusive products, which expanded customer touchpoints and generated market buzz.
In South Korea, licensing business sales in the health & beauty, corporate special sales and stationary categories were strong with Hello Kitty and Pochacco attracting attention.
In Taiwan, the licensing business performed well in the toy, apparel and food categories. The strategic deployment of a wide range of Sanrio characters proved successful. Notably, the popularity of My Melody and Kuromi has further increased.
In the Hong Kong and Macau region, the licensing business saw growth in sales, driven by the success of the corporate special sales category, which implemented initiatives in collaboration with financial institutions and local governments.
In Southeast Asia, sales of the licensing business were driven by multi-regional expansion through toy licensees and the corporate special sales category also performed well, contributing to sales growth. Hello Kitty maintained its popularity, and the toy and food categories saw sales growth due to the strong performance of a wide range of Sanrio characters.
Operating profit increased due to sales growth across Asia.

Explanation of Financial Position

（JPY: Million）