(500A) Stock Price

TO Books is a publishing and entertainment company that handles the creation of intellectual property (IP) such as novels and comics, along with diverse media expansion. The company possesses both the capability to "create" stories and to "deliver" them to audiences, operating across a wide range of businesses from discovering and publishing web novels to anime, stage productions, audio content, and merchandise. A key characteristic is its ownership of a portfolio of IPs that can be operated long-term, including the flagship title "Ascendance of a Bookworm."

The company's customer base spans from book readers to anime and stage fans, as well as merchandise purchasers. Revenue is generated through book sales, licensing income from media expansion and production committee fees, and direct income from merchandise sales and event hosting. Through its official online store and official web manga site "Corona EX," the company maintains direct connections with fans, building a system to continuously develop works while monitoring reader feedback.

Operations are managed as a single segment, the "IP Creation and Expansion Business," divided into three product and service areas: books, media, and merchandise and events. In the book sector, the company focuses on light novels and comics. In the media sector, it produces anime, films, stage productions, and drama CDs. It also strategically plans character merchandise and fan events. The company maintains an in-house audio production team, giving it competitive advantage through strategic planning from voice actor casting to subsequent media expansion.

TO Books is implementing a distinctive management strategy centered on a shift "from stories to narratives." The company has established the number of major IPs (IPs with annual e-book sales exceeding 10 million yen) as a key performance indicator, expanding this to 81 titles by the April 2025 fiscal period. This metric is positioned as an indicator of sustained reader engagement and media development potential, with the company aiming for stable IP creation through expanded editorial staff and strengthened development systems.

The deepening of media mix strategy serves as the company's key differentiator. Rather than one-off content releases, the company adopts an "evergreen" model, combining books, anime, theater, merchandise, and events across platforms to generate long-term revenue. Notably in the anime sector, the company has increased its lead role in production committees to 33.3%, pursuing a strategy to secure control over IP value enhancement through active involvement from the planning stage. The company's approach clearly extends beyond providing source material, demonstrating a willingness to assume appropriate risks while maximizing revenue opportunities.

Market expansion is pursued along two axes: overseas expansion and utilization of third-party IPs. For overseas expansion, the company builds on foundations including e-book distribution centered on North America and direct transactions with foreign publishers, while also beginning joint production with overseas distribution partners. In parallel, the company is expanding contract services including anime adaptations, film distribution, stage productions, and merchandise planning for third-party IPs, thereby improving capacity utilization of its accumulated production and distribution capabilities.

In response to technological innovation and market changes, the company is strengthening internal controls in light of AI advancement and international standards. The company is broadening its genre portfolio beyond fantasy and otherworldly settings to include contemporary, horror, and suspense titles, while establishing early market trend detection systems utilizing reader feedback on web novels. The company demonstrates flexible business operations responsive to market needs, including establishing awards through partnerships with e-book retailers and launching female-oriented labels.