Basic Views
The TOHO Group upholds the spirit passed down from our founder, Ichizo Kobayashi, whose words still resonate today. He championed our mission “to widely provide inspiring entertainment to the general public” and reminded us that “We owe our business to the happiness of the customers.” Guided by this legacy, we have established our Group Slogan: “Moments for Life.” Our Group Purpose is to “create moments that move hearts and enrich lives,” and our group values are embodied in our motto: to always act with vivacity, modesty, fairness, and grace. Based on these principles, the TOHO Group remains committed to earning the continued trust of all our stakeholders.
To this end, the Company has positioned the enhancement of its corporate governance as one of its top management priorities and endeavors to ensure the transparency and fairness of corporate management by achieving prompt and appropriate decision-making by the Board of Directors and strengthening the supervisory and audit functions of independent outside Directors.
With the TOHO Charter, TOHO Group , Sustainability Policy, and TOHO Group Human Rights Policy established as the Group’s policies, the Company has made sure that every employee of the Group is informed of these policies and constructed a Group-wide internal control system and risk management system, thereby striving to achieve its sustainable growth and enhance its corporate value over the medium to long term.
Corporate Governance Structure
*Click to enlarge
- As of October 2, 2025
Actions to Implement Management That Is Conscious of Cost of Capital and Share Price
-
Current Assessment
The Company believes that generating return on equity (ROE) in excess of cost of shareholders’ equity is important for improving corporate value. The Company evaluates the cost of shareholders’ equity to be around 4–5% in its external assessment(*) based on the CAPM. The ROE against this was 9.3% in the previous fiscal year (fiscal year ended February 28, 2025), and the Company has been able to achieve return on capital that exceeds the cost of shareholders’ equity.
Meanwhile, the Company’s PBR is currently in the high 2x and PER temporarily reached 30x, exceeding the Prime Market average, and has been hovering in the mid-20x range. The Company believes that it has received a certain degree of recognition from the stock market in terms of growth potential and other factors.
(*) Evaluation by Plutus Consulting co., Ltd.
Reference: CAPM calculation assumptions
-Beta: around 0.5 to 0.7
-Market risk premium 6.0
-Risk-free interest rate 1.0 -
Targets and Initiatives
Based on the above evaluation, the Company believes that promoting various initiatives in line with the goals and strategies set forth in the TOHO VISION 2032 Group Management Strategy and the TOHO Mid-Term Plan 2028 will lead to further enhancement of the Group’s corporate value.
The TOHO VISION 2032 Group Management Strategy has set a target ROE of over 10% on a sustainable basis in the Long-term Vision 2032, while the TOHO Mid-Term Plan 2028 has set a numerical target of achieving ROE of 9% or higher. In addition to improving profitability by promoting growth strategies, we will continue to improve capital efficiency through appropriate shareholder returns and strive to achieve sustainable return on capital that exceeds the cost of shareholders’ equity.
Disclosure Policy
The Company will strive to ensure the trust of all stakeholders by disclosing corporate information in a timely and appropriate manner and by adhering to the following items.
-
Information Disclosure Standards
The Company will disclose information in accordance with the Financial Instruments and Exchange Act and other laws and regulations (“laws and regulations”) and the Rules on Timely Disclosure of Corporate Information by Issuers of Listed Securities (“Timely Disclosure Rules”) stipulated by the Tokyo Stock Exchange. In addition, the Company will actively disclose information that it deems important or useful, even if it is not required by laws and regulations or the Timely Disclosure Rules.
-
Information Disclosure
Information that must be disclosed under the Timely Disclosure Rules will be disclosed via the Timely Disclosure network or TDnet operated by the Tokyo Stock Exchange. After disclosure via TDnet, the same information will be promptly posted on our corporate website. Additionally, even if disclosure is not required under the Timely Disclosure Rules, we will publish information deemed desirable to be disclosed on our corporate website, etc.
-
Insider Trading Prevention and Fair Information Disclosure
The Company has established the Insider Trading Prevention Regulations in order to appropriately manage important corporate information, prevent insider trading and ensure fair information disclosure, and strived to ensure that all group employees are thoroughly aware of and understand the regulations.
-
Proper Use of Earnings Forecasts
The forward-looking statements, including earnings forecasts, disclosed by the Company are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company. Actual results may differ significantly from these forecasts due to various factors.
-
Quiet Period
The Company observes a quiet period to prevent leakage of information on financial results and ensure fairness. The quiet period is basically from the end of each quarter until the date on which earnings are announced. During the quiet period, we refrain from responding to or commenting on inquiries regarding financial results or performance. However, if earnings forecast is expected to significantly change during the quiet period, the Company will disclose information in a timely and appropriate manner in accordance with the Timely Disclosure Rules.
-
Internal Systems
The Company will establish and maintain a system to properly implement our disclosure policy and to ensure timely and appropriate information disclosure in accordance with the Timely Disclosure Rules. Our department in charge of disclosure (Corporate Communications Department) will collaborate with the division responsible for the information in question to gather and analyze relevant information. We will strive to clarify the process from the occurrence to the disclosure of information, ensuring that the Company discloses information based on right decisions.