Our Corporate Philosophy/Strategy
TOHO group will respond skillfully to the desires of our customers by thinking from their points of view, throughout our operations in each of our business domains: screen, theater, and real estate.
Our unwavering goal is sustainable growth through unceasing efforts to be a company that implements creative "Projects" or "Ki-kaku" (Ki for planning, and Kaku for visualizing in Japanese, respectively).
Embracing "Act with vivacity, modesty, fairness and grace," the spirit of TOHO founder Ichizo Kobayashi, TOHO group will continue to take on new challenges and new opportunities to deliver unsurpassed excitement and entertainment to our customers.
TOHO Group Business Principles
Ichizo Kobayashi built TOHO group with the mission which is "To widely provide inspiring entertainment to the general public." Since then, we have delivered entertainment in various forms, primarily movies and theatrical plays, inspiring joy and dreams for a wide range of customers.
We also value the founder's credo "We owe our business to the happiness of the customers," along with his dictum "Act with vivacity, modesty, fairness and grace," as corporate mottos. Based on his philosophy, we are committed to conducting fair and transparent business activities in all three of our business domains: screen, theater, and real estate, while aiming to be a corporate group that always provides the best entertainment in the world, proposing fresh and innovative projects developed with our customers' points of view in mind at all times.
TOHO will strive to increase our corporate value through group-wide efforts supported by these business principles.
Medium-Term Management Strategy: TOHO VISION 2021
In April 2018, TOHO Group officially launched TOHO VISION 2021, the new medium-term management strategy, under which the following basic policies for management strategy have been established. By promoting various measures along with these policies, we will seek to achieve sustainable corporate growth and increased corporate value.
1. Major strategies
- (1) Content strategy
- We will create new core content by further strengthening our planning and development capabilities.
- (2) Platform strategy
- We will present unique and high quality "entertainment experiences."
- (3) Real estate strategy
- We will organize and promote the development and replacement of assets by implementing a thorough review of our existing properties.
2. Breakthrough strategies
Common name: Godzilla x Global = G2 Strategy
- (1) Character strategy
- We will enhance our character business centered on Godzilla.
- (2) Global strategy
- We will work toward the full implementation of JAPAN IP (Japanese entertainment content by TOHO and others ) on a Global scale.
3. New business strategy
- We will strive to expand the scope of our activities by fostering new businesses in anticipation of major changes in the business environment alongside technological innovation.
- TOHO group emphasizes the importance of operating profit as a measure of the group's performance, since revenue generated from our movie business, the largest segment, fluctuates considerably from period to period. We aim to earn a stable operating profit, from the perspective of both sales and costs, by repeating the PDCA (Plan-Do-Check-Act) cycle on a group-wide basis.
In TOHO VISION 2021, we set a target to ensure steady consolidated operating profit exceeding 40 billion yen, as well as aiming to supersede our record-high profit of 50.2 billion yen posted in the fiscal year that ended in February 2017.
Our basic dividend distribution policy is to distribute annual dividend payments of 35 yen as a base, and proactively consider additional performance-linked dividend payments if the business performance exceeds the forecast or target.
We will implement share repurchases in an agile and proactive manner as necessary, paying attention to the level of free cash flow. Through these measures, we will make efforts to appropriately return profits to our shareholders and manage the business in a way that makes the most efficient use of shareholders' capital.