[Company analysis] Toho Co., Ltd. (東宝)

「Toho Co., Ltd. (東宝)」is a Japan's largest multimedia company which conducts movie and theater production and distribution business. It is famous for the entertainment business for the general consumer, but this company is also engaged in the real estate business. The company name is similar to「Toho Zinc Co., Ltd.,(東邦亜鉛)」, a non-ferrous metal manufacturing company, but there is no connection. The number of consolidated employees is approximately 3,032.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Toho Co., Ltd.
Company name (Japanese)	東宝
Date of establishment	August 1932
Headquarters location	〒100-8415 東京都千代田区有楽町一丁目2番2号
Capital	10,355
Consolidated sales	246,274
Consolidated operating profit	44,982
Consolidated total assets	460,622
Consolidated capital	365,903
Capital adequacy ratio	79.4%
Consolidated number of employees	3,032

 

 

 

2. Summary and Features

 
「Tokyo Takarazuka Theater(東京宝塚劇場)」which was founded on August 12, 1932, merged「Photo Chemical Laboratory Co. Ltd.(冩眞化学研究所)」in 1937. By this merger, current「Toho」was was established. Since then, it has continued to rapid grow, and as a result, it has become a company that represents the Japanese film industry itself. There are several competitors such as「Toei Company(東映)」,「Shochiku(松竹)」and「Kadokawa Daiei Studio(角川大映スタジオ)」but all of them cannot be peer of「Toho」.

 

The current「Toho」is one of the core company to the「Hankyu Hanshin Toho Group」, alike「H2O Retailing Corporation」that owns「Hankyu Corporation(阪急電鉄)」,「Hanshin Electric Railway(阪神電気鉄道)」,「Hankyu Hanshin Holdings(阪急阪神ホールディングス)」and「Hankyu Department Store(阪急百貨店)」and「The Hanshin Department Store(阪神百貨店)」. As of 2019,「Toho」has "Imperial Theater(帝国劇場)" and "New Building Theater Clie(新館シアタークリエ)" under the direct management.

Their main businesses are the video business and entertainment. Besides, they achieved high profits in the real estate business. In particular, they own many real estate properties in the Kanto and Kansai regions. In particular,  "Richmond Hotel(リッチモンドホテル)" and "Royal Park Hotel(ロイヤルパークホテル)" that are community-based hotels, it the one of the Toho's property. In 2015, they also built "Shinjuku Toho Building". This real estate business accounts for about 4% of the total operating income.

Thanks to the various businesses such as real estate, video and entertainment,「Toho」is able to secure stable financial resources. And based on this stability, they are developing the movie theater business under the name of「TOHO Cinemas Ltd.」. This company operates many theaters in Japan, and naturally the connection with the film makers becomes stronger.

 

 

 

3. Major Business

 

■ Video Film business
They distribute about 30 movies a year on average, and we are focusing on promotion and sales from the planning and production stages.

■ Theater business

They conduct not only musical but also Kabuki, classical ballet, opera are held at "Tokyo Nissay Theater" and "Osaka Umeda Theater".

■ Real estate business
They own many theaters, movie theaters, and office properties mainly in the Tokyo metropolitan area, and are involved not only in entertainment but also in business hotel relations.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		233,548	242,668	246,274
Consolidated operating profit		50,223	47,586	44,982
Consolidated total assets		417,526	445,785	460,622
Consolidated net assets		320,442	349,932	365,903
Breakdown of sales	Video Film business	154,573	159,302	159,229
	Theater business	15,586	15,973	17,005
	Real estate business	61,442	63,258	65,506
	Others	1,946	4,134	4,532